ASX Releases Continuous Disclosure Guidance on the Insolvent Trading Safe Harbour
On 9 March 2018, an updated version of the Australian Securities Exchange's ("ASX") Guidance Note 8 came into effect to include guidance on a listed entity's continuous disclosure obligations in the context of the new insolvent trading safe harbour for directors contained in section 588GA of the Corporations Act. ASX has made it clear that the safe harbour laws do not affect an entity's continuous disclosure obligations or reduce the entity's obligation to disclose the extent of its financial difficulties. This will place a listed entity under a heightened disclosure risk during the period of a safe harbour.
This Jones Day White Paper includes an overview of the continuous disclosure regime, explains the ASX Guidance on the insolvent trading safe harbour, and provides recommendations for continuous disclosure management in the safe harbour period.