We are currently acting to defend a client who is being sued by notorious share market raider David Tweed through his company Direct Share Purchasing Corporation.
Mr Tweed’s modus operandii is to require company’s to provide a list of their share registry, which under present laws they are required to provide. He then mails out low-ball offers to purchase shareholders’ shares or units at around 50% of their market value. Usually a fraction of the offerees will accept and Mr Tweed will make an immediate 50% profit by his acquisition.
In the event that shareholders realise they have not received full value and refuse to authorise the transfer after signing the initial acceptance form, Mr Tweed’s current practice is to issue letters of demand then Magistrates’ Court proceedings for the full amount of the value of the shares.
Should you be facing a claim from Mr Tweed’s Direct Share Purchasing Corporation we recommend you contact our office for assistance.
While it will not resolve the problem for those facing legal action at present, we are aware that the Federal Government is currently legislating to enable companies to refuse to provide a copy of their Share Registry for the purpose of making an unsolicited share offer.