China Dairy Corporation Limited (“CDC” ASX refers to your enquiry of 30 July 2018 requesting further information about the delisting of CDC. Thank you for bringing your concerns to ASX’s attention. To clarify, CDC was not removed for failing to pay listing fees, but rather was removed from the Official List for significant breaches of ASX’s Listing Rules. ASX has a responsibility, as a licensed market operator, to monitor and enforce compliance with its Listing Rules. Where a listed company commits a breach of those rules, ASX has the power to suspend trading in its shares. If that does not lead to an appropriate outcome, ASX has the ultimate power to terminate the listing of the company. ASX does not take either of these steps lightly, since it takes away the ability of shareholders to trade their shares on a public market. However, when a listed company shows that it is not willing to comply with the listing rules, ASX has little choice but to terminate its listing to maintain the reputation of the market and to prevent it from attracting new investors. As indicated in the relevant announcement, this was the case with CDC. ASX is a market operator and not a corporate regulator and does not have the power to take regulatory action against a listed company or its directors for breaching the law. In the case of a company established in Australia, the relevant corporate regulator with that power is the Australian Securities and Investments Commission (“ASIC”. In the case of a company established in another jurisdiction, it is the equivalent to ASIC in that jurisdiction. CDC is incorporated in Hong Kong and its corporate regulator is the Securities and Futures Commission in Hong Kong. Given the significant concerns with CDC, ASX has written to both ASIC and the Securities and Futures Commission in Hong Kong asking for certain matters to be investigated. Following the removal of CDC from the official list of ASX, each shareholder will become a shareholder of an unlisted entity. As a shareholder in an unlisted entity, each holder will continue to have a right to vote at shareholder meetings of CDC and will otherwise continue to have all the rights of a shareholder that they currently have pursuant to CDC’s articles of association and under Hong Kong corporate law. ASX anticipates that you will be contacted by CDC or its registry in due course in relation to your shareholding. ASX sincerely regrets the position in which you find yourself regarding your CDC shares, but as I have explained above, ASX had to take action to remove CDC from the official list because of its ongoing breaches of the Listing Rules. ASX is unable to advise you of a particular course of action in relation to your holding, but I at least hope that this information has assisted somewhat to clarify the situation.
CDC Price at posting:
6.6¢ Sentiment: None Disclosure: Held
ASX refers to your enquiry of 30 July 2018 requesting further information about the delisting of CDC. Thank you for bringing your concerns to ASX’s attention. To clarify, CDC was not removed for failing to pay listing fees, but rather was removed from the Official List for significant breaches of ASX’s Listing Rules. ASX has a responsibility, as a licensed market operator, to monitor and enforce compliance with its Listing Rules. Where a listed company commits a breach of those rules, ASX has the power to suspend trading in its shares. If that does not lead to an appropriate outcome, ASX has the ultimate power to terminate the listing of the company. ASX does not take either of these steps lightly, since it takes away the ability of shareholders to trade their shares on a public market. However, when a listed company shows that it is not willing to comply with the listing rules, ASX has little choice but to terminate its listing to maintain the reputation of the market and to prevent it from attracting new investors. As indicated in the relevant announcement, this was the case with CDC. ASX is a market operator and not a corporate regulator and does not have the power to take regulatory action against a listed company or its directors for breaching the law. In the case of a company established in Australia, the relevant corporate regulator with that power is the Australian Securities and Investments Commission (“ASIC”
