As far as why LNG went into Voluntary Administration, there could be any number of reasons, eg running out of liquidity being only one!
Companies also go into VA to avoid legal action against it (and it's remaining Office Bearers) because once in VA, legal action can't be taken against the entity.
This means a Company wouldn't be liable to pay compensation for action taken against Office Bearers (Directors) who have left, those Office Bearers could then be actioned against for compensation personally.
Cases for compensation could be made against former Office Bearers for a number reasons including (but not limited to) any or all of the following:
Misleading Statements, Breaches of Market Disclosures, Deceptive Comments made during Company Conference Calls, Breaches of Corporate Governance, Negligence in Financial Risk Management, Negligence in Shareholders Interests, Inappropriate Auditing etc
This is why providing clear, hard, documented and recorded evidence is important in these types of cases.
It helps to remind shareholders that action seeking compensation against former Office Bearers does not mean the Company (or what's left of it) pays for those costs once the Company is in Voluntary Administration!!!!
There is plenty of information to come in regard to these matters, I just post some of it here for those shareholders who aren't involved in more private discussions, and I ask that replies or general comments to my posts can be made on another thread (that's also relevant to this) because I don't particularly feel it's good for this thread to get clogged up with distracting type posts.
MB
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