@Vasso 1) Forward-looking statements will trigger an obligation...

@Vasso

1) Forward-looking statements will trigger an obligation under listing rule 3.1 when the entity knows sufficient information to reasonably indicate that a material prior statement will not eventuate as predicted, and that the deviation will be material to the price of the entity’s securities. ASX takes enforcement of listing rule 3.1 very seriously, and has specific measures to enforce this obligation.

2) Previously I have provided substantiated information on LNGL's Market Disclosures and ASX Listing Rule 3.1 pointing out 13 statements by LNGL management forecasting successfully achieving binding offtake agreements, reaching FID and / or beginning construction. I have also provided around 20 other examples of statements that perpetuated those forecasts, as well as other information.

3) A class action takes around 20 shareholders; however, a civil suit does not require this number and may be undertaken by a few shareholders.

4) The first step of any compensatory process is a 'Complaint' to both the ASX and ASIC. A complaint to ASIC will add credence to the compensatory process.

Here is some added information obtained from ASIC and related industry sources:


Claims trends:

Broadly speaking, the majority of claims currently made against directors and officers can be divided into 2 categories:

1) Compensatory claims (for damages) where the asserted liability is based on allegations of breaches of directors’ duties (either under the Corporations Act or at common law).

2) Regulatory claims where liability derives from regulatory investigations or actions (e.g. ASIC, OH&S or environmental protection agencies).

The two categories are not mutually exclusive. An ASIC Notice requiring the examination of a director as part of an investigation can also…. give rise to the institution of criminal or civil penalty proceedings. A director may also be subject to a separate but related claim for damages, for example from a shareholder.

The important point to remember is that compensatory claims can easily 'piggy back' onto regulatory investigations.


Director liability for company losses

As a result of a director breaching duties, that have caused the company to suffer some loss, the director may be in breach of civil or criminal provisions of the Corporations Act 2001 and may have to compensation for the loss. Remember, a director’s obligations may continue even after the company has ceased trading and has been deregistered.


Consequences of failing to perform director duties

A director may:

1) Be guilty of a criminal offence with a penalty of up to a maximum of $200,000

2) Have contravened a civil penalty provision

3) Be personally liable to compensate the company or others for any loss or damage they suffer

4) And be prohibited from managing a company


This information is easily verified through ASIC and other legal sources.