The Australian Securities and Investments Commission (ASIC) today filed an application with the Supreme Court of Queensland seeking an urgent interlocutory injunction against Australian Mining Investments Limited restraining the company from putting resolutions to approve the issue of executive options to members at its General Meeting (GM) to be held on Wednesday, 12 July 2006.
Both parties agreed to Australian Mining Investments providing an undertaking to the Court that it not proceed with the resolutions in relation to the approval of options until 25 August 2006, with ASIC's application being adjourned to a date to be fixed.
ASIC was concerned that disclosure of the resolutions to approve the issue of a total of 10,000,000 options with an exercise price of 50 cents to Australian Mining Investments directors, Mr Wayne McCrae (7,000,000 options), Mr Timothy Koitka (2,000,000 options) and Mr Peter Hutchinson (1,000,000 options) is materially out of date.
The Explanatory Memorandum to the GM values the options based on a share price of Australian Mining Investments as at 29 May 2006, which was 31.5 cents. Australian Mining Investments last traded its shares, prior to going into a trading halt on 5 July 2006, at $7.11.
Trading in Australian Mining Investments shares is currently suspended. 'ASIC is concerned that members were being asked to make a decision about the remuneration of directors on the basis of materially out of date information', Ms Jennifer O'Donnell, Executive Director of Compliance said.
'In particular, on the basis of recent market trading, the value of the options to be expensed under International Financial Reporting Standards could be considerably higher than disclosed to Australian Mining Investments shareholders', Ms O'Donnell said.
ASIC is continuing to monitor disclosure and trading in Australian Mining Investments and liaise with the Australian Stock Exchange.
