I've followed up with this email (Sorry binbin, I plagiarised a large amount of your last post, but as its good for the good I thought you wouldn't mind - that and I couldn't be bothered rewriting what had been well written the first time):
"Hi again Adam,
I ask as there has been dramatic selling over the last 6 weeks which leads me to believe we did not get the contract extension and that some people know this and have sold because of it.
As a public company, the directors have a duty to provide continuous disclosure of information to its Shareholders where it is material and includes but is not limited to the following :
- a transaction that will lead to a significant change in the nature or scale of the entity’s activities;
- the entry into, variation or termination of a material agreement.
As per the ASX website, compliance with Continuous Disclosure Listing Rule 3.1 is critical to the integrity and efficiency of the ASX market and other markets that trade in ASX quoted securities or derivatives of those securities. Reflecting this, Parliament has given the rule statutory force in section 674 of the Corporations Act.
If a listed entity breaches Listing Rule 3.1, it may also breach section 674(2). This is both a CRIMINAL OFFENSE and a financial services civil penalty provision, punishable in the former case by A FINE OF UP TO $110,000 and in the latter case by a CIVIL PENALTY OF UP TO $1,000,000. Alternatively, if ASIC has reasonable grounds to suspect a breach it may, by administrative action, issue an infringement notice imposing a penalty of up to $100,000. The entity may also be liable to pay damages to any person who suffers loss or damage as a result of the breach.
An officer who is involved in such a breach may infringe section 674(2A) of the Corporations Act. This is a civil penalty provision punishable by a PENALTY OF UP TO $200,000. The officer may also be LIABLE TO PAY DAMAGES to anyone who suffers loss or damage as a result of the breach.
If you are waiting to release information because you are still in contract negotiations then that is fine, but if you are waiting to release information so to package negative news with other more positive developments then that's in breach of the rules governing publicly listed companies. Given in the last 6 weeks the Share Price has lost almost 50% of its value, this leads me to assume its the latter.
If the directors are already aware of the status of our contract with Thames Water, they need to disclose it immediately. Because of 1. the requirement for continuous disclosure is not just for positive developments but for negative ones as well so shareholders can make informed decisions, but also 2. in that it dramatically undermines the perception of the company, having material impacts on investors (low share price) and the company (low capital raisings).
I look forward to a reply,
Thanks,
..."
I really hope I get a reply, as the behaviour of this company is the most nonchalant of any I've been invested in, in relation to the way it treats its shareholders.
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