ASIC has joined some of Australia’s largest listed companies in warning investors to carefully consider unsolicited offers to buy their shares.
ASIC has received reports that many Australian shareholders are receiving offers for their shareholdings at prices significantly below what they could expect on the market.
Inexperienced or elderly shareholders, or those under immediate financial pressure, are often most at risk of selling their shares without carefully reading the offer and clearly understanding the implications.
Although it is not against the law to make an unsolicited offer to buy someone’s shares, it is illegal to mislead or deceive shareholders into accepting an offer. The offer must also comply with strict legal requirements, including prominent details of the current market value of the shares if they were to be sold on the market.
ASIC urges anyone considering these offers to first make a few important safety checks to protect themselves against a poor deal.
Further tips, including information on how to sell shares at market prices, are available for investors on ASIC’s dedicated consumer website http://www.fido.gov.au/
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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