Offer, page-35

Under the Corporations Act 2001 (Cth), a company must provide full and frank disclosure of all relevant information to shareholders when the company is subject to a hostile takeover. This includes material information that may affect the decision of shareholders in deciding whether to accept or reject the offer. It is a criminal offence to withhold such information, and directors found to have breached their duty of disclosure may be liable for a fine of up to $200,000 or imprisonment for a term of up to 5 years. In addition, the ASX Listing Rules require companies to disclose information relevant to a takeover bid. If a company fails to do so, the ASX may suspend or terminate the company’s listing.