News
Bell Gully asks Securities Commission to limit scale and scope of directors' and officers' initial disclosures of interest
Leading law firm Bell Gully has asked the Securities Commission to limit the scale and scope of the initial directors' and officers' disclosures of interest required under new regulations.
To meet new requirements under the Securities Markets Act 1988, directors and officers of listed companies must disclose relevant interests, such as shareholdings, by 8 March 2004.
"Directors and officers have been asked to provide a considerable level of detail about their shareholdings over many years - information that may be difficult to compile in a short period of time," said Bell Gully partner Garry Downs.
"There is also some confusion as to how this detailed information is to be compiled and presented in order to satisfy the new regulations.
"In addition, many directors have already made similar disclosures to the New Zealand Exchange (NZX) in order to satisfy the exchange's listing rules.
"While we wholly support the intention of the new regulations, we are concerned that the current process will increase compliance costs.
"As a result, we have asked the Securities Commission to exercise its powers under the Act in order to (i) significantly limit the information required to be provided in initial disclosures and (ii) excuse directors who have already disclosed under the NZX Listing Rules from making additional initial disclosures.
"We believe that this will limit possible compliance costs while still achieving the objectives of the new regulations."
Any relief in this area will, of course, be dependent on the Commission's response.
For further information, please contact:
Josephine Gallagher
Senior Marketing and Communications Manager
Tel: +64 9 916 8664
Mobile: +64 21 190 3185
Bell Gully
