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#Written by David Tam, 1997. #
#davidkftam@netscape.net Copyright 1999#
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David Tam
Wednesday, February 5, 1997.
BUSINESS PRESS REVIEW
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Howlett, Karen. "Kensington's Chinese deal receives approval from VSE."
The Globe and Mail. Tuesday, February 4, 1997. B13.
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Kensington Resources Ltd., a small exploration company listed on the
Vancouver Stock Exchange, resumed trading after being halted on December 6th of
last year. A halt of its trading was requested by the company to announce an
agreement with China Diamond Corp. to acquire half the interest in mining
territory in China, as well as a bid to purchase China Diamond's equity. In
return for the acquired property, China Diamond's shareholders would receive 25
million shares of Kensington. This amount would have been large enough to
represent a controlling equity interest in Kensington. The VSE was concerned
about this deal because a major shareholder of China Diamond was fugitive Bill
Zheng. As a consequence, VSE maintained the halt in trading. Certain
restrictions and requirements had to be satisfied. However, since Mr. Zheng
has now sold all of his shares of China Diamond, the concern is no longer
present, so the VSE has resumed trading of Kensington.
I believe this article reflects many of the topics that were discussed in
our first law class. Mr. Sheldon had discussed how the government (both
provincial and federal) enforced its legislation. Through commissions and
self-regulated bodies such as the VSE, the government has been able to
economically enforce its legislation. This article shows how the VSE, has
exercised power that has been delegated from the provincial BC government.
(
geocities.com/siliconvalley/campus/9640/2ndYear) (
geocities.com/siliconvalley/campus/9640) (
geocities.com/siliconvalley/campus) (
geocities.com/siliconvalley)