This paper provides a detailed review of the affairs of listed Australian wine producer Evans & Tate limited during the 2005 financial year, during which the firm surprised capital markets with far greater than expected losses, and foundered into near complete financial failure. A case is made to support the proposition that statements made by the firm in the lead up to the shock loss announcement were simply not supportable on the facts. This raises questions about the nature of the operation of a raft of corporate regulations in Australia, including the continuous disclosure regime – a key plank of the mechanism designed to ensure that equity capital markets do not lapse into an uninformed state. It is concluded that there are serious flaws in the regime, and insufficient regulatory intervention in cases of apparent breach of the regime.
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