ASIC and Corporations Act 2001

Doing some light reading on the ASIC website, Corporations Act 2001 and Scheme of Arrangement process.

From the short time I have been investigating, it is a requirement that ASIC approve the SID implementation at the second court date and should there be anything.. pardon my pun "not kosher", then they would be able to deny the approval by the courts. As per the ASIC website....

Running a registered scheme - https://www.legislation.gov.au/Details/C2021C00274/Html/Volume_3#_Toc77845867

Responsible entities must comply with certain requirements to run a registered managed investment scheme (registered scheme). Key obligations are outlined under Chapter 2, Chapter 5C and Chapter 7 of the Corporations Act.If we become aware that a responsible entity is not complying with its obligations, we may conduct further inquiries. We may also take enforcement action as appropriate. The enforcement action may be administrative, civil or criminal action.

Corporations Act 2001 - https://www.legislation.gov.au/Details/C2021C00274/Html/Volume_3#_Toc77845867

Section 2. Part 2J.4— Interaction with general directors’ duties 260E
General duties still apply. A director is not relieved from any of their duties under this Act (including sections 180, 181, 182, 183 and 184), or their fiduciary duties, in connection with a transaction merely because the transaction is authorised by a provision of this Chapter or is approved by a resolution of members under a provision of this Chapter.

So if this matter is appropriately bought to the attention of ASIC they can effectively stop the approval. With regards to the LAW, the GCY BOD do have the power to end the FFR SID however negligently are not saying they don't think they can. Should it proceed, the GCY BOD could face criminal charges as per their requirements under the Corporations Act 2001. The law is the law and you can not plead ohhh I must have interpreted it wrong, sorry. That wont cut it.

Interesting that I can find this out quite quickly, yet GCY could not. So in short... this is not over. Even if the SID is implemented, it can potentially rolled back with legal proceedings.