Forum Archive Index - February 2000

["hugh webber" <hugh.webber@clear.net.nz>]

One thing that has become blindingly obvious is that there is a major hole 
in the information which listed companies must provide. 
I refer particularly to small/shell listed companies which have a major
change of direction.
They announce they intend to take up some new exciting direction/have some
name(s)
on board - make a cash issue or back some major new assets into the shell
with a 
change of control.
Because they are already listed (like say Spectrum was on borrowed money to
pay its listing fee)
then they are exempt from the normal requirements to do a proper prospectus
and issue it.
Such a prospectus would have info on assets and liabilities and their
make-up and valuation,
projected cash-flow, revenue, net profit, tax effects, dividends,
imputation credits, a run down
on their directors background/track record etc etc.
Why is there any effective difference between a new listing and a major
change of direction and scale?

Surely this is something the NZSE or Commerce Commission or Ministry of
Commerce or the new
reforming Labour Government could get its teeth into with major benefits
for shareholders and the flows
of investment capital.

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