ASX has released a proposal, titled "Strengthening Australia's...

ASX has released a proposal, titled "Strengthening Australia's equity capital markets". This covers a number of topics, but of most interest to Hotcopper users is the proposal to change the rules about placements for small to mid caps (stocks out of the top 300). The change is to allow issues of up to 25% at up to a 25% discount to market. That's up from the present 15%.

The paper is silent on the impact to shareholders who are denied the opportunity to participate equally with institutions who will enjoy additional shares issued at discount.

The paper is silent on the potential for management to entrench themselves and personal interest or to facilitate an effective takeover.

There is a good article in the business section of Monday's Age.

The paper focuses on the costs of meetings to approve placements but misses the opportunity to discuss use e communications to reduce costs and provide rapid approvals to protect shareholders' interests. Neither does it challenge the law that drives the costs and suggest change allowing all shareholders equal participation.

The paper invites comment by 14 May 2012.