Aguia Resources announced today, in barely three lines of text, that it has sacked its CEO and that its chairman has resigned. Why? Who knows; at least not anyone who relies on ASX and ASIC to protect shareholders. The share price has fallen nearly 30%. And, supposedly, we have a system of continuous disclosure. The small resources end of the market is rife with failures to fulfil continuous disclosure obligations. Aguia's behaviour is a reason for more people to abandon the sector. Aguia has effectively given the middle finger to all investors and ASX and ASIC by failing to disclose the reasons for the board movements. Here is another opportunity for the market regulators to at least pretend they are serious.
You are right but it would only take ASX/ASIC to tackle one or two cases to cause a change because companies are taking advice from professonals on what they can get away with. Consequently, I am happy to take the opportunity, when it arises, to refer to ASX as running a seedy backstreet Moroccan bazaar to goad it into action.
The market is doing a good job of reform by attrition at the moment. On the flip side the businesses worth holding are extremely cheap in this market. I have a gold one in particular that I am keen on, will share via full post in the next few days
Sounds a bit more exotic than the exchange!
John, I agree with the sentiment. Unfortunately this is a common feature of micro cap investing on the ASX. The companies fly under the radar of regulators and the talent pool of directors/executives is too shallow to match the number of companies listed on the exchange.
I should also add Graham Ascough is a good operator in my opinion. He had a good influence on Mithril Resources which has some interesting copper prospects in the NT.