Where is ASIC - Class Action

Paul Garvey wrote in one of his articles in 'The Australian' in December that an ASIC spokesperson had confirmed that they were aware of the Kasbah proceedings whilst the challenge of the merger took place.  Considering the challenge was successful, its reasonable to suspect that ASIC continued to monitor events with Kasbah.

It should now be very apparent that the scheme was about giving control of Kasbah to Pala and African Lion.  All the directors apart from the Lion delegate have now left the Kasbah board.  All of them voted in favour of the merger and even though they have now departed, I am sure this doesn't absolve them of their previous actions.

I took the following from ASIC's website (have highlighted a couple of very pertinent points).  It details what ASICs role is and how they regulate the financial services to ensure the integrity of multi-billion dollar industry.

If the events at Kasbah over the last 6 months don't warrant investigation, it is questionable what ASIC does as a regulator because there are many shareholders who feel that directors have not acted in the best interests - the number 1 priority of all directors.

http://www.asic.gov.au/regulatory-r...s/directors-what-are-my-duties-as-a-director/

Directors - What are my duties as a director?

Generally, in addition to the requirement to ensure compliance with general and specific laws applying to your company’s operations, your primary duty is to the shareholders. However, if your company is insolvent, or there is a real risk of insolvency, your duties expand to include creditors (including employees with outstanding entitlements).

http://www.asic.gov.au/about-asic/what-we-do/our-role/

What we do
ASIC is Australia’s corporate, markets and financial services regulator.
We contribute to Australia’s economic reputation and wellbeing by ensuring that Australia’s financial markets are fair and transparent, supported by confident and informed investors and consumers.
We are an independent Commonwealth Government body. We are set up under and administer the Australian Securities and Investments Commission Act 2001 (ASIC Act), and we carry out most of our work under the Corporations Act 2001 (Corporations Act).
The ASIC Act requires us to:

• maintain, facilitate and improve the performance of the financial system and entities in it
• promote confident and informed participation by investors and consumers in the financial system
• administer the law effectively and with minimal procedural requirements
• enforce and give effect to the law
• receive, process and store, efficiently and quickly, information that is given to us
• make information about companies and other bodies available to the public as soon as practicable.

Our strategic priorities

ASIC's priorities are:
Promoting investor and financial consumer trust and confidence

• education – investor responsibility for investment decisions remains core to our system. We empower investors and financial consumers through our financial literacy work
• gatekeepers – we will hold gatekeepers to account
• consumer behaviour – recognising how investors and consumers make decisions