AUSTRALIA: ASX Improves its Listing Rules

Thursday October 10 2019

On 8^th October 2019, the Australian Securities Exchange (ASX) released its final response to submissions to its November 2018 consultation paper – Simplifying, clarifying and enhancing the integrity and efficiency of the ASX listing rules. The response includes a range of rule amendments and new and updated guidance.

Key initiatives include:

• more guidance and direction on the information that should be given to shareholders in notices of meetings
• more guidance and direction on the voting processes that should be followed at shareholder meetings and more consistent reporting of voting outcomes
• simpler and clearer processes and forms to announce a proposed issue of shares and to seek their quotation
• changes to ASX’s quarterly reporting regime to provide a more robust disclosure framework for start-up entities
• better and timelier disclosure by listed investment companies and listed investment trusts of their net tangible assets (NTA) backing
• new measures to address breaches of the listing rules.

There are also further enhancements to ASX’s admission rules and processes, including:

• a simplification of ASX’s escrow rules and guidance to make the escrow process less burdensome for listed entities
• an extension of ASX’s ‘good fame and character’ listing condition to include non-director CEOs and CFOs
• measures to address inappropriate behaviours by promoters and professional advisers in new and back door listings.

Click on the above link for further information.