The main issue is that MED does not have enough cash to pay its obligations. It is fair that ASX wants the sharemarket to be fully informed. i.e. "They are powerless to tell directors what to do with capital" isn't the specific issue. The issue is that whatever the Directors decide, has it been approved by the shareholders? and are the shareholders appropriately informed?
We are not talking abut a small amount of money. We are talking about $12 M for a small Company.
I agree that ASX should have acted sooner; but not acting sooner does not justify not acting at all; and can hardly be used as an argument that ASX should continue to ignore the issues.
To be listed on ASX, one has to follow the ASX rules. ASX cannot tell MED what to do; ASX do however have the right to suspend and later delist. I think you will find it will be very difficult to get any investment money back if MED is delisted - but all the best to you if you advocate this 'brave' strategy.
MED Price at posting:
0.6¢ Sentiment: Sell Disclosure: Held
