sagey aquires $200k, page-10

The Australian Securities and Investments Commission (ASIC) and the Australian Securities Exchange (ASX) govern the trading activities of company directors. Until this year the securities trading policies of ASX were covered by non-mandatory corporate governance recommendations.

On January 1, new ASX listing rules covering the policies applicable to this activity came into effect. All listed entities are now required to define and disclose a Securities Trading Policy that complies with the minimum content requirements spelt out in ASX Listing Rule 12.2. Rather than being prescriptive, the new rules require the company itself to define the trading limitations that are most appropriate to its own circumstances.

Companies are now required to define closed or black-out periods when directors are prohibited from trading in the company’s securities. These are typically the times between the closing of the company’s books and the public disclosure of its financial results. However, any period, if seen as appropriate, can be specified by the company.