Noone is likely to be surprised by this outcome given the...

Noone is likely to be surprised by this outcome given the concentration of voting power.

Authorities and regulators should be compelled to review the activities of and the relationships between entities, and the conduct of directors, based on several factors:

• risk and impact on investors and consumers (including relative materiality, mental health and wellbeing);
• nature and severity (once off event or pattern of behaviour, relatively minor oversight or deliberate fraud such hiding debt through obfuscated related party transactions to misrepresent a company's financial health)
• intent and conduct of the entity or director (inadvertent or deliberate)
• compliance history (previous violations)
• legal obligations (as contemplated by the Corporations Act and any other relevant legislation)

Non compliant directories and entities should not be permitted to continue operating without sanction simply because ASIC either does not have the resources or the conduct does not meet the public interest test. The relative materiality to the majority of individual investors outside of the top 25 who are determined not to be involved in any impropriety may still be significant.

Until ASIC becomes more proactive in this space:

• non compliances such as related party transactions will likely continue to occur
• performance bonuses will likely continue to be paid to parties who oftentimes have failed to deliver any shareholder value, and have in many cases eroded shareholder value to an almost unrecoverable level, which have in many cases been exacerbated through successive consolidations
• disproportionately high executive and director salaries will likely still be paid to individuals who are oftentimes not only failing to deliver shareholder value, and have in many cases eroded shareholder value to an almost unrecoverable level, which have in many cases been exacerbated through successive consolidations
• voting power will likely continue to be concentrated to a smaller number of shareholders through continued share dilution