51
with the requirements of the proposed Section 155D in the 1983 Bill,
the main differences were:
9.11
(a) the time limits; under the proposed Section 155D,
a company would have to supply the information to
shareholders at the same time as it gave it to third
parties, whereas under the Rules it has to supply
it "as soon as reasonably practicable"; and
(b) the penalties; under the proposed Section 155D, there
would be a default fine on the company and every officer
of the company in default, of $500 per day, whereas
under the Rules the penalty is suspension/cancellation
of an offending company's listing.
The Standing Committee also noted that, for most practical
purposes, the notifiable transactions set out in paragraphs 6-9
of the Undertaking in the Rules are the equivalent of the concept
of price-sensitive information contained in the proposed Section 155D.
Paragraph 6 of the Rules requires disclosure of notifiable transactions
to the whole world, not just shareholders, "as soon as reasonably
practicable" after agreement in principle has been reached for a
notifiable transaction.
9.12
Having regard to the widespread opposition to the proposed
Section 155D in both 1980 and 1983 and to the reservations which
some Members of the Standing Committee had regarding the practical
problems involved in implementation of such a provision, it appeared
to the Standing Committee that the question which Members had to
ask themselves was: Were they satisfied that the requirements in the
new Rules were good enough or did they think that something stronger
was required?
152