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The High Court held that the shareholder had the same rights as an unsecured creditor on the subsequent winding up of the company to lodge a claim against the company’s assets for the shares’ loss in value. In this case, the company’s alleged misconduct arose from a breach of its continuous disclosure obligations in failing to advise the ASX of changes in its operations that meant it could no longer operate as a going concern.
At first glance, it would appear that those involved in governance would hail the decision, seeing it as deterring companies from deliberately misleading investors...
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