Corps Act - Market Manipulation
- The manipulation of share prices might allow an investor to derive profits on the futures market, or affect the price at which options to subscribe for shares are exercised or the number of shares issued on the conversion of preference shares.14
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For example, Fame Decorator Industries Pty Ltd v Jeffries Industries Ltd (1988) 28 ACSR 58; 16 ACLC 1235 (sale of shares at low price to affect conversion ratio for convertible notes); ASC v Nomura International Plc (1999) 29 ACSR 473 (cross-market manipulation).
The conduct we have witnessed - forcing the share price down convert in order to convert notes at 'bargain basement prices' may well fall within the scope of market manipulation.
It's something which ASIC or the ASX should lat least look into if they are to protect the integrity of share trading in stocks like APG.
Any other views?
