17 May 2018
The FMA intends to file a case stated procedure to seek the court’s determination on whether continuous disclosure obligations for listed issuers continue to apply when the issuer is in voluntary administration.
This will provide clarity to the market on this principle. The circumstances surrounding the voluntary administration of CBL Corporation Limited have illustrated the legal complexity of ensuring compliance by a listed Issuer in voluntary administration.
The FMA acknowledges that the case stated procedure will not result in timely information being provided to shareholders of CBL in this instance, and the FMA will continue to consider other avenues for securing the release of some information for their benefit.
It will, however, provide greater clarity for voluntary administrators, the FMA, and the market, and set future expectations appropriately.
A case stated procedure is a procedure by which the FMA can ask the court for its opinion on a point of law. It is not an action taken against any particular party.
Continuous Disclosure is an important feature of a fair, orderly, and transparent market. We consider the information released under continuous disclosure remains important to shareholders even when a listed Issuer is in voluntary administration, as shareholders seek to make assessments of the valuation of their holdings and how they may exercise any other rights they have in relation to those holdings.
The FMA will be issuing no further comment at this stage.