Shareholders Move to Vote against Chinese Directors, page-30

O.K - I think its fair enough that this thread stays on topic and shareholders who want to participate in the discussion have a fair go to discuss the pros and cons of voting no against the direction of the board on the proxy votes .

I have one question and that relates to resolution 6 - the shareholders who are proposing to vote against the reelection of directors are being advised to ;

From the ASX insights page

"vote YES for Resolution 6, which seeks approval for the placement to Rich Lead"

Resolution 6 is actually to vote for the ratification of this issue - The deal is already done the $$$$$ are in bank - what you are actual voting for is to exclude 37.5m shares from the 15% cap - Now as Devils advocate whats to stop another 37.5m shares being issued to yet another company like Rich Lead or even more shares to Rich Lead  after the AGM vote possibly even putting the rights issue in doubt or being shelved.

This is a geniune on topic post as it seems to me a no vote would be in line with the vibe of the shareholder proposed action.


6. RESOLUTION 6 - Ratification of Share Issue

The Company issued 37,500,000 Shares to Rich Lead Investment Pte Limited as a share placement to raise funds to assist with the completion of process plant at the Rocklands project and to provide ongoing working capital.
The share issue is to be completed by 18 November 2015. Regulatory Requirements ASX Listing Rule 7.1 prohibits a listed company, except in certain cases, from issuing new equity securities equivalent in number to more than 15% of its capital in any 12 month period without the prior approval of its shareholders (15% Rule).
The general operation of the 15% Rule means that the Company cannot issue new securities which exceed 15% of the issued capital of the Company in any 12 month period without the prior approval of its shareholders. Accordingly, the Directors are seeking Shareholder ratification to the previous issue of the Shares in accordance with ASX Listing Rule 7.4.

The effect of the Shareholders approving this Resolution will be to remove the Shares issued to Rich Lead from the operation of the 15% Rule and enable the Company to issue further Shares for any subsequent requirements that may arise.