Even if you understood all the lessons from this sorry tale you still would not be safe from dodgy directors who operate behind the apparent safety and regulations of ASIC & ASX.
People simply do not expect to be be lied to and conned by company directors of a company listed on the ASX. There is a grossly incorrect perception that every public company and it's directors are strictly regulated and actively pursued by the regulators immediately after an infringment.
CVI and it's dodgy directors are not the first of their kind and nor will they be the last. As long as greed exists in the minds of dodgy directors and equally in the minds of shareholders, people will lose money hand over fist.
Directors who face serious allegations ought to be suspended immediately pending the outcome of any investigation. Shareholders at arms length to the directors should be offered more control on the selection of the replacement director(s). That is to say that a majority shareholder with clear connections to an infringing director either by way of historical association or as a recipient of unfair or biased benefits from an infringing director should have their voting power reduced. Or perhaps ASIC could have a roster of stand-in directors.
These would be welcome powers for ASIC to have right now, forget everything else that needs to change.
CVI Price at posting:
0.4¢ Sentiment: None Disclosure: Not Held
