Forum Archive Index - February 2000

[Richard Scott <richard@tkf.att.ne.jp>]

Here, here!!

Richard Scott

>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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