Ann: Change in substantial holding, page-19

Please consider my previous reply to you as incorrect.

I just read the case of Beconwood Securities Pty Ltd vs Australia and New Zealand Banking Group Limited in 2008 (FCA 594 the Federal Court).

The Federal Court of Australia's decision based on the Securities Lending and Borrowing Agreement form that both parties signed is that Beconwood (the lender) had legally transferred the title (of ownership) of the shares to Green Frog which was part of Opes Prime (the borrower).

The Judge said: "The principal objects of securities driven share lending (to enable the borrower to satisfy a short sale or to complete the settlement of a sale within the time) can only be achieved by transferring title to the borrowed securities to the borrower. This is the very essence of the transaction; without the ability to pass title there is no utility in the borrowing."

I am still not sure if the SLA form, which was criticized as ambiguous has been rectified since then. If this form is still as it was in 2008 then it is actually very risky for anyone or institution to lend shares for short selling purposes in Australia.