shareholder action imf brief, page-96

LC56,

Shareholders lodging a claim will be considered contingent creditors, so administrator covers himself by acknowledging a potential liability but not actual as he can't until it is finalised one way or the other.

This means the shareholders will be looking to participate as creditors and have a say when creditors vote on future of company.

Main problem is keeping the showing going at the expense of creditors until legal action is sorted out one way or the other.

Each shareholder has a different entry price and reason for action, imagine trying to quantify it.

Not an easy position for all concerned.

DOCA solves all issues in one hit, however trying to satisfy all parties will take some doing. Once this is done legal action falls away as small holders will not be in a position to fund action and litigation funders will not pursue as they can't sign up a decent percentage of shareholders to justify.