SP1 0.00% $1.07 southern cross payments ltd

Should our opinion and/or of ASX now change due to the publication of the "reasons" report regarding ISX?, page-64

  1. 2,243 Posts.
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    This would be an example of not core business and corruption:

    Company A is a public IT company that has directors who wish to earn performance shares.
    Company A is not a builder, nor have they ever done any building.
    Company A has a friend that wants to build a house in an exclusive Sydney suburb for say, $5M
    Company A asks the friend if he can contract to build said house.
    Company A contracts a builder to build the house.
    Friend pays Company A and Company A pays builder.
    Company A books Friend's payment as revenue
    Company A earns performance shares.

    In the above, Company A does not build and there is no benefit to shareholders.
    As a comparison, ISX is an entity that does development and implementations amongst other things. ISX shareholders benefited from a profit from the implementations (albeit small) and from future GPTV from some of the implementations carried out in the June Qtr. This "begs the question", is ASX grasping at straws here?
 
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