Section 674 of the Corporations Act obliges a listed company to notify its market operator of “information that a reasonable person would expect, if it were generally available, to have a material effect on the price or value of … securities” of the company.

ASX Listing Rule 3.1A excludes the obligation to make announcements about incomplete proposals, matters of supposition or matters that are insufficiently definite.

ASX has released for public comment:
•a consultation paper entitled Review of ASX Listing Rules Guidance Note 8 – Continuous Disclosure: Listing Rules 3.1 – 3.1B;
•a proposed new version of Guidance Note 8: Continuous Disclosure: Listing Rules 3.1 – 3.1B;
•a shorter guide entitled Continuous Disclosure: An Abridged Guide; and
•proposed Listing Rule changes outlined in a document entitled Proposed Disclosure Related Amendments to the ASX Listing Rules.

The focus of the consultation is the proposed new version of Guidance Note 8, which is intended to provide listed entities and their officers and advisers with clearer, more detailed information to assist them in understanding and complying with their continuous disclosure obligations under Listing Rules 3.1 – 3.1B.

The draft guidance indicates that while listed entities must provide “immediate” disclosure of price-sensitive information, immediate doesn’t mean instantaneously, but promptly and without delay especially if the information has already reached some of the market.

Companies also must make sure any announcements are clear and complete. Each announcement must contain enough detail for investors to understand its ramifications and to assess its likely impact on the price of the company’s securities.

The guidance note includes a helpful overview of the continuous disclosure decision process and when information is market sensitive.