If the administration is going to take place in the USA, the possibility of a Class Action against anybody responsible for shareholders' losses is definitely on the table. To my mind, questions about the role of The Exchange arise: 1) Does the ASX bear any responsibility for what has gone on? 2) Did they allow the Company to get away with actions / behaviour it should not have been allowed to get away with?
I haven't gone into all the details of what has taken place, vis a vis the Company's actions and The Exchange's responsibilities. So I just don't know if The Exchange has any responsibility for what has happened, and I am not accusing it of any delinquencies; it may have acted perfectly correctly. But I hope the receivers will look into all aspects of that.
In the final analysis, my guess is the officers of The Company will be found to have limited assets when measured against the losses suffered by shareholders and noteholders. For that reason the receivers must look at every possible avenue of recovery, and if the officers of The Company are of limited worth, as I suspect will be the case, any other avenues of recovery must be pursued.
AZZ Price at posting:
50.0¢ Sentiment: None Disclosure: Held
