This petition relates specifically to an ASX listed company, Resource Generation Limited, ASX code RES where there is a proposed sale of overseas assets which are 100% owned by Australian shareholders at a massive discount to the independent valuation of those assets.

More generally, this issue affects all Australian shareholders and investors and undermines confidence in the orderly operation of the ASX.

Why? If you are a shareholder that has invested your retirement money or hard earned savings into what you believed was a company that was governed and protected under Australian legislation, you may be wrong.

Consider an ASX listed company that owns a resource mine(oil, gold, coal, rare earths etc) in Africa. These assets are held outside Australia and are regulated under the jurisdiction of the country where the asset is located. 

Typically the ASX listed company owns shares (up to 100%) in a company established to control the asset that is registered in the country where the asset is located. The overseas company can through deliberate or negligent means, place itself into a position of being placed into bankruptcy. The assets would then be regulated by the overseas administrators, thus circumventing Australian regulations.

What are the implications?

The mining assets can be sold inside that country to  "local interests" without any regulation from Australian authorities, at a valuation which is heavily discounted to an independent valuation.

We need regulation and enforcement action by ASIC to protect Australian shareholder and investors where Australian companies have direct or indirect ownership of Australian assets that are registered overseas