.jpg)
Some recent examples of poor timing and lack of detail in disclosures by some companies have prompted NZX to issue this reminder to NZX listed companies about the potential impact of such practices on investor confidence.
Investors have a right to expect the companies they invest in to advise them of material changes in an upfront and timely fashion. This is the way companies build the trust and confidence of their investors.
Not all of the most recent cases constitute actual breaches of the Listing Rules as they relate to continuous disclosure, therefore the practice falls outside NZX's jurisdiction.
Nevertheless, NZX believes that when listed companies have a significant New Zealand investor base, regardless of where their home exchange is, they should not underestimate the negative effect of failing to observe the spirit of continuous disclosure.
When investors hear that the market has learned of material information only via international newswires, or that companies have included significant material information in other unrelated market releases, their confidence in the credibility of those companies, and the market as a whole, is invariably dented.
NZX has received numerous calls to that effect. New Zealand investors also expect NZX to be able to enforce penalties on these companies.
It is intensely frustrating for NZX that it is not able to do so, when overall market confidence is suffering because a few companies are failing to recognise the rights of New Zealand investors to expect equal access to good quality information about the companies they own.
