ASIC obtains orders cancelling 15 million shares held in Northwest Resources Limited
Following an application by ASIC, the Federal Court of Australia has ordered the cancellation of 15 million shares in ASX-listed Northwest Resources Limited (Northwest) that were held in the name of Craigside Company Limited (Craigside), a company incorporated in the British Virgin Islands and operating from Hong Kong.
ASIC had alleged that although Craigside was the holder of the shares (which represented 7.08% of Northwest’s issued capital), it did not have a relevant interest in them. ASIC also alleged that those who did have a relevant interest in the shares had not disclosed their interest to Northwest, contrary to legislative requirements.
The orders, which were made with Northwest’s consent and not opposed by Craigside followed ASIC and Northwest submitting to the court a joint statement of agreed facts. In making the orders, the court did not make any declaration as to who did hold a relevant interest in the shares held by Craigside. Neither ASIC nor Northwest sought such declarations.
ASIC’s action was taken as part of its continuing focus on maintaining fair and efficient financial markets.
ASIC Commissioner John Price said, ‘The requirement for substantial shareholders to disclose their relevant interests in listed companies is essential to ensuring that investors are informed about the identity and dealings of people who may have influence over the affairs of the companies they are investing in. This underpins confident and informed participation by investors in the Australian financial system.’
ASIC’s investigation into various matters associated with Craigside’s shareholding in Northwest, including possible contraventions of the law, is continuing.
Source: ASIC
