Thursday September 12 2013
News Source: Global Exchanges
Focus: General - Global Exchanges
Type: General
Country: Australia
Link: http://www.asxgroup.com.au/media/PDFs/long-term-suspended-entities-consultation-paper.pdf
The Australian Securities Exchange (ASX) has published a consultation paper on proposed changes regarding long-term suspended entities. ASX is seeking comments on a proposal to automatically de-list long-term suspended entities if their securities have been suspended from trading for a continuous period of three years.
A policy based on this proposal is hoped to address issues that have been raised about suspended entities being “left in limbo” for too long. Security holders have made the point that it is often better from their perspective if an entity with no immediate prospects is wound up and surplus assets returned to them. In addition to avoiding further value leakage for security holders through ongoing administration costs and directors’ fees, it may also enable them to crystallise a loss for tax purposes.
Submissions on the consultation should be forwarded to ASX before Friday, 1 November 2013.
Click on the above link for more details.