PRESS RELEASE 71 4/11/2015
ShareSoc notes the dismay of many shareholders in Globo Plc at the rapid collapse of the company. It has now gone into administration so the outlook for existing shareholders is very bleak indeed.
Globo was another of those controversial AIM stocks which were actively traded by private investors and where the merits of the company were the focus of vigorous debate. However, it would now appear that the company might have been the subject of a major fraud, rather like Torex Retail was some years ago, or Polly Peck.
Stock market investors are happy to accept the normal business or market risks faced by any company, but when they cannot rely on the audited accounts of a company they feel that more steps need to be taken to improve regulation. Although the problems in this case may well be exceptional, there have been numerous defaults and delistings by AIM companies of late. And failures by auditors to discover mismanagement still happen on a regular basis.
One has to ask, is the AIM regulatory regime run by the LSE and dependent on Nomads, who are chosen and paid for by the firms they’re expected to regulate, fit for purpose?”
ShareSoc has formed a small committee of investors to pursue possible legal action and encourage the administrators to do so in this case. There is a web page dedicated to the affairs of Globo here where shareholders can register their interest: www.sharesoc.org/globo.html .
For further information, please contact:
Deputy Chairman, ShareSoc