Prescribed events which require immediate announcement
Listed issuers are now required to immediately announce the reasons given for cessation of office of a director1, chief executive2 and chief financial officer3 including but not limited to any information relating to his disagreement with the board and a statement as to whether or not there are any matters that need to be brought to the attention of the shareholders. If the reasons for cessation are contentious in nature, for example, where the reasons are defamatory or where there is an existing dispute in relation to the cessation of office, how does a listed issuer ensure compliance with such requirement?
Listed issuers must adhere to the standard of
disclosure set out in paragraph 9.16 under the Main LR. Amongst others, the
listed issuers must ensure that its announcement is factual, clear,
unambiguous, accurate, succinct and contains sufficient information to enable
investors to make informed investment decisions. Further, the announcement must
be balanced and fair, and does not contain any language which is inflammatory,
defamatory or scandalous of another person. In instances where the reasons for
cessation of office are contentious in nature, the listed issuer should seek
prior legal advice in the preparation of the announcement required.