South32, a mining company based in Australia, has been in the news recently for its controversial stock kiss plan. The plan has been criticized by shareholders and the corporate regulator, ASIC, for its potential to allow directors to benefit from insider trading. At the same time, the company has been accused of attempting to rip off BHP Billiton through a fishing expedition for confidential information. This article takes a closer look at the stock kiss plan and the fishing expedition, and explains why they are not kosher.
South32 Directors’ Stock Kiss Plan
South32’s stock kiss plan was implemented in 2017, and allows directors to trade in company shares while in possession of price-sensitive information. The plan has been met with criticism from shareholders and ASIC, who have raised concerns that it could lead to insider trading. South32 has defended the plan, claiming that it is necessary to incentivize directors and to ensure the company remains competitive.
However, the plan has been criticized for its lack of transparency. It is not clear what type of information directors are allowed to access and whether they are expected to act in the best interests of shareholders. ASIC has also warned that the plan could be in breach of the Corporations Act, which prohibits directors from trading while in possession of price-sensitive information.
Fishing Rip Off of BHP Billiton Not Kosher
South32 has also been accused of attempting to rip off BHP Billiton through a fishing expedition for confidential information. The company is alleged to have asked BHP Billiton for access to its confidential data, such as cost estimates and production schedules. BHP Billiton has refused to provide the information, claiming that it is protected by commercial confidentiality agreements.
The fishing expedition has been met with criticism from shareholders and corporate governance experts, who have questioned the company’s motives. They have argued that South32 is attempting to gain an unfair advantage by accessing sensitive information that it is not entitled to. They have also raised concerns that the information could be used to manipulate the market.
South32’s stock kiss plan and fishing expedition have been met with criticism from shareholders and corporate governance experts. The stock kiss plan has raised concerns about potential insider trading, while the fishing expedition has been criticized for attempting to gain an unfair advantage. Both plans have been deemed not kosher by shareholders and corporate governance experts, who have argued that they could lead to market manipulation.
It has recently been found that South32 Directors were involved in a questionable plan to benefit from share buybacks from its parent company, BHP Billiton. Reports suggest that the directors engaged in a ‘kiss fishing’ rip off scheme which has been deemed not ‘kosher’ by the corporate watchdog.
For those unfamiliar with the practice, ‘kiss fishing’ is a term used to describe the process of individuals unethically using information related to insider trading. According to The Age, South32 directors were found to have exploited the disclosure of share buyback information to acquire shares in BHP Billiton before the stock price rose sharply.
There has been much public outcry over the situation, with particular focus given to the fact that the directors had access to information which was not available to the public. As such, these individuals were able to take advantage of the share price at the detriment of other shareholders who could not benefit from the bought back shares.
The matter is currently being investigated by the corporate watchdog, ASIC, who are looking into whether or not the directors in question have contravened s1043A of the Corporations Act. If found to have acted against the Act, the directors would face disciplinary action and financial sanctions.
South32 has released a statement to address the situation, with the company expressing their regret over the situation and offering to cooperate with ASIC in any way possible. While the company has said they are committed to acting within the law, they have stated that this action does not reflect their corporate values and that the company does not condone such behavior.
Overall, the situation raises questions about the current corporate practices of company directors and their responsibility to protect the interests of shareholders. It also reaffirms the need for corporate governance rules to ensure that such unethical behavior is not sanctioned. With ASIC’s investigation still underway, all eyes are now on the outcome of the case to see if any legal or financial actions will be taken against those involved in the incident.
