Forum Archive Index - February 2001

["Ian Andrews" <iandrews@ihug.co.nz>]

A similar thing happened to me in 1998, when I was a shareholder in NZ Petroleum Ltd.

NZSE granted a waiver to NZP to excuse it from holding a shareholders' meeting to approve a very onerous rights issue. As a result of this rights issue, underwriter Malibu Holdings Ltd (Eric Watson) was left with 62% of the Company, bought for a song.

I complained to the Securities Commission, who conducted an "enquiry" & cleared waiver approval. 
I requested a copy of the SC report so that I may better understand this decision & was refused. The Ombudsmans Office have been trying to get the report ( or even an edited version) for me for over 2 years! It is looking quite hopeful now after the recent "Fletcher Challenge" court case brought by Stephen Franks, who is also seeking information from the Securities Commission.

I believe the problem stems from the top & it is the Securities Commission which should be encouraged to be more accountable. The current Commission has told me they are more interested in "giving policy advice to Government" than in enforcing existing laws.Some investors may have a different impression of their role. 

 

I suggest increasing pressure on the Securities Commission to better control the Stock Exchange by  thoughtfully considered letters & emails will eventually achieve that aim. 

Surely we all have some responsibility to contribute to the common good as well as concentrating on our personal profits, to maintain or improve the environment in which our profits are earned. The occasional  letter to start with doesn't cost a lot, does it??