The share market disclosure laws will be permanently changed after the Federal Government’s share market disclosure reforms were passed by the Parliament on Monday night.
As a result, companies and directors will be liable for continuous disclosure law breaches only where they have acted with ‘knowledge, recklessness or negligence’ in market sensitive updates. In the past, lawsuits only needed to prove companies and their officers failed to disclose information to the market, regardless of intention.
The legislation also includes an extension of provisions allowing virtual annual general meetings and electronic signatures.
The Group of 100 (G100) has been working with politicians on both sides and the cross bench for the last three years to achieve this outcome, it is a testament to the strong relationships the organisation had developed in the Federal Parliament that the G100 has been able to play a significant part in the disclosure laws campaign.
Obviously the G100 was not the only group advocating for this change but unlike others the organisation is concerned to be seen as constructive and maintain its ‘apolitical’ stance, so has refrained from making comments in the media. Thanks to Andrew Porter for leading the campaign for the G100.
The G100 now turns attention to proxy reforms, an ongoing issue for many members. The G100 will be seeking comments from members as the next stage of this campaign is developed.