Is a p.l.c acting contrary to its contractual terms and conditions if it -?
If so then are the following classed as Major Changes ? :--
1. Changing the objective of the company from direct purchasing of property and land - to - investing in subsidiary companies that focus on purchasing property and land.
2. Changing the Target Investment Figure from £400,000 - to - £1 million.
3. Changing the Directors of the Company.
4. Changing the companies stategy from investing in 'concrete' low risk assets - to - a high risk company floatation on the stockmarket.
The Result was that the "Directors" of this p.l.c lost investors £400,000 after the company ran out of cash and became liquidated in september. Now they have rebought the assets off the liquidator at a BARGAIN PRICE with another p.l.c.company !!
Can the investors SUE these Directors for all of these UNINFORMED CHANGES ?
Alternatively Is it possible that the investors can claim off the old or new p.l.c's insurance ?
Answers:
The directors of a plc (Public Limited Company) have the responsibility to run a company and oversee its operations. They don't need to report such activities (and changes in activities) except through an annual report.
If the plc is a listed company then the stock exchange has additional reporting requirements. If these were not made then the company is probably in breach of its listing.
The directors need to report any changes regarding the capital structure of the company to its shareholders in accordance with its constitution.
Get a hold of the company constitution and corporations law to see if they fulfilled their duties.
You don't mention which country this company is located in. In Australia, you complain to ASIC:
http://www.asic.gov.au
In the US, you can complain to SEC:
http://www.sec.gov
In the UK, it's the FSA:
http://www.fsa.gov.uk
Hope that helps.
Cheers,
Richard.