If anyone remembers the Nicholas Bolton Bris-Connections matter. In that instance, the company had partly-paid shares. They were purchased by Boltron for very little or obtained for free and used as leverage against the company in the AGM voting. It went to the Supreme Court. I spent a few days writing it all up and posted it to the Companies & Securities Commission. A senior officer at C&SC sent me a letter thanking me for my efforts . The partly paid shares were dropped as an equity. The partly-paid was a derivative that ordinary share investors did not have the sophistication to understand the complexity and implications of. The matter was negotiated and settled & the partly-paids were dropped as a useable listed security.
Similarly, firstly here I believe a person in the company has worked out how to negate shareholder wealth, by utilizing the massive leverage obtained by combining several large consolidations to nullify there own shareholders' value.
Secondly, this ever-issuing of under-market share values makes a mockery of the on-market equities system.
Thirdly, controls over the issuing of shares off-market.
Fourthly, the issuing of shares, below the lowest market price should be outlawed. Shares need to have a minimum agreed value, or else they have no value, like what happened here. Here over 46 billion shares were created and issued below one-tenth of a cent.
Fiftly, the cessation of Convertable Notes, especially those with no minimum conversion value. All these means allow the company to drive down the share price for its own ends, which acts to work against the interests existing shareholders.
Sixth, the institution of a fair rate of interest, not mafia or credit card rates of interest, but rather a benchmark interest rate,
Seventh, to outlaw the mass issuing of shares to the point where company interests can control the registry and take over the company by stealth.
Eight, a limit on the number of shares that can be issued in a 1,2 or 3-year period.
I believe the Classic Minerals case is an instance where the regulatory authority should devote adequate resources to explore and rectify the injustices exposed in the manipulation of the value of Classic Minerals stock. Companies and the Securities Commission have a duty of care to protect shareholders from exploitation by their companies' directors.
Where the techniques that were used by Classic to be used by other companies, the speculative sector would become unworkable,
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