Updated Resource on Continuous Disclosure

Governance Institute of Australia has just released the fourth edition of its publication, Continuous Disclosure: Listed and Other Disclosing Entities. Continuous disclosure is a cornerstone of Australia’s corporate governance framework and is crucial for maintaining the integrity and efficiency of the market, fostering investor confidence and promoting fair trading.

This latest edition reflects changes to legislation, ASX Guidance Note 8 and recent cases, as well as the recent Report of the independent review of the changes to the continuous disclosure laws, released in May 2024. The Guide provides practical assistance for those managing continuous disclosure in listed companies.

This publication is essential reading for company officers, directors and executives. They are the individuals whose knowledge, actions and decisions are vitally important to ensuring compliance with disclosure obligations.

In Australia, continuous disclosure obligations are primarily governed by the Corporations Act 2001 and the ASX Listing Rules. Listed entities are required to immediately disclose any information that a reasonable person would expect to have a material effect on the price or value of the entity’s securities.

Listed entities have had obligations to disclose information to the market for many years, as it is essential, good governance to ensure that all markets are fully and equally informed. There are also obligations that apply to certain non-listed entities, and it is important to know how and when these apply.

Unlisted disclosing entities are also subject to continuous disclosure obligations under Section 675 of the Corporations Act. These entities must ensure that investors and other stakeholders are kept informed of material information that could impact their investment decisions. This requirement aims to enhance confidence and informed participation by investors in the unlisted sector.

As the regulatory landscape evolves, it is imperative for both listed and unlisted entities to stay informed and compliant with their continuous disclosure responsibilities.

Read Governance Institute’s latest publication here.