CGB (ASX) Ann: Replacement Rights Issue Prospectus

Originally posted by Basileus: ↑

@xsol

I do not think that it is a question that should be framed around ASIC regulations, ASX listing rules or, the Corporations Act. There has been some previous 'fumbling' around announcements and relisting rules etc. For example, the recent 'non renounceable rights issue' announcement had to be withdrawn and then reissued.

It is not illegal for a business to lose money nor, fail to achieve its stated objectives. That's just a reality of the corporate world. I think it is more a question of the, 'due diligence' and 'engagement' of shareholders and potential investors.

The fact is, the company belongs to the shareholders. As owners, if they are less than satisfied with the direction and or success of the company, then they should have items added to the AGM and scrutinise the responses from the BOD. Accountability starts with asking questions.

For example, I think holders should be asking some very exacting questions about this latest issue. I have declared my views of this latest 'raising'.

Perhaps, have a read of some of the following.

"The ability of shareholders to hold the board to account is a fundamental principle of corporate governance. Effective investor engagement can enhance the long term performance of a company."

https://asic.gov.au/regulatory-resources/corporate-governance/shareholder-engagement/

"In a period where corporate governance is increasingly under the spotlight, culture and conduct should be a key focus area for companies."
(...)
"As an organisation, you need to know what 'good' looks like in your industry, and ensure that you continually strive to meet and exceed those standards."

https://asic.gov.au/about-asic/news-centre/speeches/asic-update-informing-and-engaging-shareholders/

And if holders purchased shares for a bit of a punt / trade then that's fine but I think that activity requires a different set of analytical parameters.

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@Basileus, I'm happy to put all of this questionable due diligence and duty of care into valid claims if you are willing to support. You are obviously heavily invested here. Maybe not financially but on principle alone. Principle or spite can push people further than money ever will. You also are beyond doubt more astute with corporate law and ethical corporate governance than many others. With the help of @GoldDigger!, @Frewak (and others who show strong interest) and a very decent corporate lawyer, I'm sure we can achieve a decent result.

I think this is the only way forward.