The ASX and ASIC are working together to crackdown on and tighten compliance with the obligations to report interests of directors of listed entities.

The ASX Listing Rules require listed entities to inform ASX of any change in directors’ interests in securities of the listed entity within 5 business days. This obligation is supported by the Corporations Act which requires directors of listed entities to notify ASX within 14 days of any change to a director’s interest in the listed company’s securities.

The ASX has stated that it intends to investigate, from 1 July 2008, all Directors’ Interest Notices which are incomplete, or lodged after the 5 business day requirement.  Further, where a director fails to comply with the Corporations Act requirement to notify ASX within 14 days of such a change, the ASX may refer the breach to ASIC.

In light of the revised stance taken by ASIC and ASX on late or incomplete notices, listed entities and their directors should ensure that appropriate procedures are in place to comply with these disclosure obligations.

To find out more about disclosure of directors’ interests contact Nicole Radice, Partner or Michelle Eastwell, Senior Associate.  

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