Skip to content

  • Home
  • COVID-19 Guide
  • COVID-19 AV library
  • Client results
  • Expertise
  • News & Insights
  • People
  • Our DNA
  • Inclusion and Diversity
  • Join us
  • Contact Us
Home / NEWS & INSIGHTS / Blog / COVID-19: Recommendations and considerations / ASX and ASIC announce regulatory relief and clarification for listed entities
COVID-19: Recommendations and considerations 16 April 2020

ASX and ASIC announce regulatory relief and clarification for listed entities

Both ASIC and the ASX have introduced a range of temporary measures to assist listed companies in response to COVID-19.  Some of the key measures are summarised here.

Continuous disclosure

ASX does not expect listed entities to make disclosures seeking to predict the impact of COVID-19, noting that entities can continue to rely on the the usual carve out for matters of supposition or those that are insufficiently definite.  Entities are reminded that they must otherwise continue to observe their usual continuous disclosure obligations.  

ASX has offered some practical guidance, including that entities should:

  • Review any earnings guidance issued prior to the COVID-19 outbreak and either update or withdraw the guidance if it is no longer current;
  • Update the market in respect of material operating decisions;
  • For entities in financial difficulty, strictly observe continuous disclosure obligations and promptly announce any material developments (e.g. a resolution of the board to appoint an administrator);
  • Announce any decision not to pay a dividend or distribution either previously announced or that had been paid or distributed in the prior corresponding period; and
  • Carefully consider whether it is appropriate to request a trading halt or voluntary suspension upon becoming aware of material information requiring disclosure but before an announcement is released to the market.

Emergency capital raising

ASX has put in place several short term Class Waivers to assist entities that may need to raise emergency capital.  The Class Waivers will expire on 31 July 2020, unless ASX decides to remove or extend them.

The key measure is the temporary uplift in the 15% placement capacity under Listing Rule 7.1 to 25%, subject to the following conditions:

  • The extra capacity is limited to one placement of fully paid ordinary securities;
  • An entity taking advantage of the extra capacity must also undertake a follow on pro rata entitlement offer or SPP at the same or a lower price than the placement;
  • Entities that have the extra 10% placement capacity under Listing Rule 7.1A must elect to utilise either that capacity or the temporary extra capacity, not both; and
  • For entities undertaking a follow on SPP, the sizing and pricing requirements for SPPs have been relaxed, but the $30,000 cap per security holder continues to apply. 

Other temporary measures announced by ASX include:

  • The Class Waiver includes the normal ‘supersize’ waiver ASX grants to entities undertaking a placement followed by an accelerated pro rata entitlement offer without the need to apply for a separate waiver;
  • The ability to request two consecutive trading halts (2+2) to consider, plan for and execute a capital raising; and 
  • A waiver of the one-for-one cap on accelerated and standard non-renounceable entitlement offers.

Upcoming AGMs and financial reporting

ASIC will be taking a ‘no action’ approach in respect of public entities with a 31 December balance sheet that do no hold their AGM by the 31 May 2020 deadline, allowing these entities until 31 July 2020 to comply. 

ASIC has encouraged entities to adopt processes for hybrid and virtual AGMs to ensure all security holders can still participate in meetings.  ASX has endorsed this position and advised those entities that have already dispatched a notice of meeting to consider providing supplementary information to security holders on electronic meeting and voting procedures.

ASX will consider applications for an extension of the deadlines for filing financial statements on a case-by-case basis.  Any such requests will generally only be granted where there has been an unavoidable delay in having financial statements audited or reviewed.

Further details of these measures can be found here.

This publication covers legal and technical issues in a general way. It is not designed to express opinions on specific cases. It is intended for information purposes only and should not be regarded as legal advice. Further advice should be obtained before taking action on any issue dealt with in this publication.

About the authors

  • Reece Walker

    Chair of Partners
  • Ben Wood

    Partner
  • Aaron Dahl

    Partner
  • Naomi Omundson

    Senior Associate

In other news

McR strengthens the Construction and Infrastructure team in Brisbane

McCullough Robertson strengthens its National Construction and Infrastructure team with key Partner hire in Brisbane

27 January 2021News

New Industrial Relations Laws – What it means for you

22 December 2020Insight

Payment Times Reporting Scheme

21 December 2020Insight

Australian Government proposes new broadcaster’s licence and forced investment quotas in Media Reform Green Paper

14 December 2020Insight

VIEW ALL NEWS & INSIGHTS

BRISBANE

Level 11, 66 Eagle Street
Brisbane QLD 4000
GPO Box 1855
Brisbane QLD 4001
Tel +61 7 3233 8888
Fax +61 7 3229 9949

 

GET IN TOUCH

Contact form

We handle your personal information in accordance with our privacy policy.

sydney

Level 32, MLC Centre
19 Martin Place
Sydney NSW 2000
GPO Box 462
Sydney NSW 2001

Tel +61 2 8241 5600
Fax +61 2 8241 5699

 

GET IN TOUCH

Contact form


We handle your personal information in accordance with our privacy policy.

melbourne

Level 27, 101 Collins Street
Melbourne VIC 3000
GPO Box 2924
Melbourne VIC 3001

Tel +61 3 9067 3100
Fax +61 3 9067 3199

 

GET IN TOUCH

Contact form

We handle your personal information in accordance with our privacy policy.

follow us

CLIENT LOGIN

newcastle

Level 2, 16 Telford Street
Newcastle NSW 2300
PO Box 394
Newcastle NSW 2300

Tel +61 2 4914 6900
Fax +61 2 4914 6999

 

GET IN TOUCH

Contact form


We handle your personal information in accordance with our privacy policy.

canberra

Level 9, 2 Phillip Law Street
Canberra ACT 2601

Tel +61 2 6243 3699
Fax +61 2 8241 5699

 

GET IN TOUCH

Contact form


We handle your personal information in accordance with our privacy policy.

© 2017 McCullough Robertson. Site map Disclaimer Privacy Policy Credit Reporting Policy

X