{"id":164,"date":"2020-04-01T21:18:41","date_gmt":"2020-04-01T13:18:41","guid":{"rendered":"http:\/\/charltonsnaturalresources.com\/?page_id=164"},"modified":"2021-03-04T16:40:02","modified_gmt":"2021-03-04T08:40:02","slug":"disclosure","status":"publish","type":"page","link":"https:\/\/charltonsnaturalresources.com\/en\/listings\/disclosure\/","title":{"rendered":"Director&#8217;s and Shareholders&#8217; Disclosure Obligations"},"content":{"rendered":"[et_pb_section fb_built=&#8221;1&#8243; custom_padding_last_edited=&#8221;on|desktop&#8221; admin_label=&#8221;ContentWrapper2&#8243; module_id=&#8221; &#8221; module_class=&#8221;content-wrapper2&#8243; _builder_version=&#8221;4.0.5&#8243; background_color=&#8221;#ffffff&#8221; custom_padding=&#8221;0px||0px|||&#8221; custom_padding_tablet=&#8221;50px|0|50px|0&#8243; custom_padding_phone=&#8221;&#8221; transparent_background=&#8221;off&#8221; padding_mobile=&#8221;off&#8221; make_fullwidth=&#8221;off&#8221; use_custom_width=&#8221;off&#8221; width_unit=&#8221;on&#8221;][et_pb_row column_structure=&#8221;2_3,1_3&#8243; use_custom_gutter=&#8221;on&#8221; gutter_width=&#8221;1&#8243; _builder_version=&#8221;3.25.3&#8243; width=&#8221;100%&#8221; max_width=&#8221;100%&#8221; z_index_tablet=&#8221;500&#8243; box_shadow_horizontal_tablet=&#8221;0px&#8221; box_shadow_vertical_tablet=&#8221;0px&#8221; box_shadow_blur_tablet=&#8221;40px&#8221; box_shadow_spread_tablet=&#8221;0px&#8221;][et_pb_column type=&#8221;2_3&#8243; _builder_version=&#8221;3.0.47&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Breadcrumbs&#8221; module_class=&#8221;breadcrumb-wrapper&#8221; _builder_version=&#8221;3.27.4&#8243;]<div class=\"breadcrumb\">\r\n<ul><li><a href=\"\/\">Home<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/listings\/' title='Listings'>Listings<\/a><\/li><li><span>Director&#8217;s and Shareholders&#8217; Disclosure Obligations<\/span><\/li><\/ul>\r\n<\/div>\r\n[\/et_pb_text][et_pb_text admin_label=&#8221;Section Title&#8221; _builder_version=&#8221;4.4.3&#8243; global_module=&#8221;229966&#8243;]<h2 class=\"section-title\">Listings<\/h2>\r\n[\/et_pb_text][et_pb_text admin_label=&#8221;Content MenuBar2&#8243; _builder_version=&#8221;4.4.3&#8243;]<div class=\"content-menubar2\">\r\n<div class=\"page-menu-panel2\">\r\n<h3>Listings<\/h3>\r\n<span class=\"hamburger2\"><\/span>\r\n<\/div>\r\n<ul class=\"cm-parent\"><li class=\"page_item page-item-157\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/likely-cost\/\">Likely Cost of Submission<\/a><\/li>\n<li class=\"page_item page-item-158 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/\">Advising on Requirements for Listing<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-185\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/listing-key-requirements\/\">Key Requirements for Listing<\/a><\/li>\n\t<li class=\"page_item page-item-181\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/management-requirements\/\">Management Requirements for Mineral Companies<\/a><\/li>\n\t<li class=\"page_item page-item-182\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/reqirements-resources\/\">Requirements Relating To Resources and Reserves<\/a><\/li>\n\t<li class=\"page_item page-item-183\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/valuations\/\">Valuations<\/a><\/li>\n\t<li class=\"page_item page-item-184\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/requirements-control-assets\/\">Requirements Regarding Control Over Mining Assets<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-159\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/manage-process\/\">Managing the Process<\/a><\/li>\n<li class=\"page_item page-item-160\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/connected-transactions\/\">Connected Transactions<\/a><\/li>\n<li class=\"page_item page-item-161\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/management-requirements\/\">Management Requirements<\/a><\/li>\n<li class=\"page_item page-item-162\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/asset-spinoff\/\">Advising on Asset &#8220;Spin Offs&#8221;<\/a><\/li>\n<li class=\"page_item page-item-163\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/advising-directors\/\">Advising Directors<\/a><\/li>\n<li class=\"page_item page-item-164\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/disclosure\/\">Director&#8217;s and Shareholders&#8217; Disclosure Obligations<\/a><\/li>\n<li class=\"page_item page-item-165\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/advising-restructuring\/\">Advising on Restructuring and Holding Structures<\/a><\/li>\n<li class=\"page_item page-item-166\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/pre-ipo-suitability\/\">Pre-IPO Submission on Suitability for Listing<\/a><\/li>\n<li class=\"page_item page-item-167\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/publicity-requirements\/\">Publicity Requirements During Listing Process<\/a><\/li>\n<li class=\"page_item page-item-168 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/\">On-Going Announcement Requirements For Listed Companies<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-191\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/chapter-18\/\">Chapter 18 \u2013 On-going Announcements<\/a><\/li>\n\t<li class=\"page_item page-item-192\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/notifiable-connected-and-other-transactions\/\">Notifiable, Connected and Other Transactions<\/a><\/li>\n\t<li class=\"page_item page-item-193\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/company-matters-corporate-governance-and-directors-and-officers\/\">Company Matters, Corporate Governance and Directors and Officers<\/a><\/li>\n\t<li class=\"page_item page-item-194\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/shares\/\">Shares<\/a><\/li>\n<\/ul>\n<\/li>\n<\/ul>\r\n<\/div>[\/et_pb_text][et_pb_text disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;Title&#8221; _builder_version=&#8221;4.4.2&#8243;]<h1 class=\"content-title\">Director&#8217;s and Shareholders&#8217; Disclosure Obligations<\/h1>[\/et_pb_text][et_pb_text admin_label=&#8221;Content&#8221; _builder_version=&#8221;4.9.0&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; hover_enabled=&#8221;0&#8243; sticky_enabled=&#8221;0&#8243;]<p>The Directors and shareholders of Hong Kong listed mineral companies are subject to a series of continuing disclosure obligations. These include a continuing obligation to disclose interests in shares, price sensitive information, and information in relation to issues under Chapter 18 of the HKEX Listing Rules.<\/p>\r\n<p><strong>Disclosure of Interests<\/strong><\/p>\r\n<p>Under Part XV of the Securities and Futures Ordinance (Cap. 571) (SFO) substantial shareholders are required to disclose interests in shares of listed corporations. Directors and chief executives of a listed corporation are also required to disclose interests in shares and debentures of the listed corporation (or any of its associated corporations). <\/p>\r\n<p><br \/>\r\nThe SFC has issued a detailed <a href=\"https:\/\/sfc.hk\/-\/media\/EN\/assets\/components\/codes\/files-current\/web\/outline-of-part-xv-of-the-securities-and-futures-ordinance-cap571-disclosure-of-interests\/outlineofpartxvofthesecuritiesandfuturesordinancecap571disclosureofinterests.pdf\" target=\"_blank\" rel=\"noopener\">practical guide<\/a> on the application of Cap 571 of the SFO.<br \/>\r\n<br \/>\r\nFor additional information please refer to our note on <a href=\"https:\/\/www.charltonslaw.com\/hong-kong-law\/disclosure-of-interests-under-the-securities-and-futures-ordinance\/\" target=\"_blank\" rel=\"noopener\">Disclosure of Interests under the Securities and Futures Ordinance<\/a><\/p>\r\n<p>Paragraphs 45 of Part A, 38 of Part B and 49 of Part C of <a href=\"https:\/\/en-rules.hkex.com.hk\/rulebook\/contents-listing-documents-0\" target=\"_blank\" rel=\"noopener\">Appendix 1<\/a> and paragraph 13 of <a href=\"https:\/\/en-rules.hkex.com.hk\/rulebook\/disclosure-financial-information-0\" target=\"_blank\" rel=\"noopener\">Appendix 16<\/a> of the HKEX Listing Rules require issuers to disclose, in certain listing documents and annual and interim reports, details of substantial shareholders\u2019 and certain other persons\u2019 interests and short positions in the shares and underlying shares of the issuer and directors\u2019 and chief executives\u2019 interests and short positions in the shares, underlying shares and debentures of the issuer and any associated corporation, as recorded (or, in the case of a new listing, to be recorded) in the registers required to be kept under sections 336 and 352 of the SFO, subject to certain stated exceptions or waivers that may be given by the HKEX. Certain circulars to shareholders may also be required to contain such information. The HKEX has issued a <a href=\"https:\/\/en-rules.hkex.com.hk\/rulebook\/disclosure-interests-information\" target=\"_blank\" rel=\"noopener\">Practice Note <\/a>on the types of information to be disclosed.<\/p>\r\n<p><strong>Disclosure of Price Sensitive Information<\/strong><\/p>\r\n<p>In addition to the disclosure of interests regime under Part XV discussed above, listed corporations are also required to make disclosures of price sensitive information (referred to in the legislation as \u201cinside information\u201d) (PSI). The regime is set out in a new Part XIVA to the SFO which is implemented under <u>Part 2 of the Securities and Futures (Amendment) Ordinance 2012 (Amendment Ordinance)<\/u>.The PSI regime creates a statutory obligation on corporations to disclose PSI to the public, as soon as reasonably practicable after PSI has come to their knowledge. Breaches of the PSI disclosure requirement are dealt with by the Market Misconduct Tribunal (MMT) which is able to impose a number of civil sanctions including a maximum fine of HK$8 million on the corporation and on its directors and chief executive in certain circumstances. The PSI statutory regime seeks to counter allegations that the HKEX Listing Rules\u2019 framework lacks \u201cregulatory teeth\u201d and reflects developments in other international markets.<\/p>\r\n<p>Under Part XIVA of the SFO, the Securities and Futures Commission (SFC) is able to directly institute proceedings before the MMT to enforce the PSI disclosure requirement and to deal with the six types of market misconduct under Part XIII of the SFO. Previously only the Financial Secretary could institute proceedings before the MMT.<\/p>\r\n<p>The SFC has published <a href=\"https:\/\/www.sfc.hk\/-\/media\/EN\/assets\/components\/codes\/files-current\/web\/guidelines\/guidelines-on-disclosure-of-inside-information\/Guidelines-on-Disclosure-of-Inside-Information.pdf\" ><strong><em>Guidelines on Disclosure of Inside Information (SFC Guidelines)<\/em><\/strong> <\/a>to assist corporations to comply with the new disclosure obligation. <\/p>\r\n<p>For additional information on the PSI regime and the implications for listed corporations and their directors please refer to our note on the PSI regime <a href=\"https:\/\/www.charltonslaw.com\/hong-kong-law\/statutory-regime-for-the-disclosure-of-price-sensitive-information-implications-for-listed-companies-and-their-directors\/\" >here<\/a>.<\/p>\r\n<p><strong>Continuing Disclosure Obligations of Listed Mineral Companies<\/strong><\/p>\r\n<p>In January 2013 the HKEX issued <a href=\"https:\/\/en-rules.hkex.com.hk\/sites\/default\/files\/net_file_store\/gl4713.pdf\" target=\"_blank\" rel=\"noopener\">Guidance Letter GL47-13 <\/a>in relation to the continuing disclosure obligations of listed Mineral Companies (as defined in the HKEX Listing Rules) and other listed issuers that publicly disclose details of resources and\/or reserves. The HKEX also published seven <a href=\"https:\/\/charltonsnaturalresources.com\/en\/links\/announcements\/listing-decisions\/\" target=\"_blank\" rel=\"noopener\">Listing Decisions<\/a> (the Decisions) in relation to issues under Chapter 18 of the HKEX Listing Rules. These concerned for the most part proposed acquisitions by Main Board listed companies of mineral assets in transactions which constituted reverse takeovers for the purposes of the HKEX Listing Rules. The Decisions therefore considered various issues which arose in relation to whether the target companies were able to meet the requirements for a new listing applicant under Chapter 18 of the HKEX Listing Rules.<\/p>[\/et_pb_text][et_pb_text disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;SubM-Children&#8221; _builder_version=&#8221;4.4.3&#8243;]<div class=\"page-submenu\"> \r\n<ul><li class=\"page_item page-item-157\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/likely-cost\/\">Likely Cost of Submission<\/a><\/li>\n<li class=\"page_item page-item-158 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/\">Advising on Requirements for Listing<\/a><\/li>\n<li class=\"page_item page-item-159\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/manage-process\/\">Managing the Process<\/a><\/li>\n<li class=\"page_item page-item-160\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/connected-transactions\/\">Connected Transactions<\/a><\/li>\n<li class=\"page_item page-item-161\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/management-requirements\/\">Management Requirements<\/a><\/li>\n<li class=\"page_item page-item-162\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/asset-spinoff\/\">Advising on Asset &#8220;Spin Offs&#8221;<\/a><\/li>\n<li class=\"page_item page-item-163\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/advising-directors\/\">Advising Directors<\/a><\/li>\n<li class=\"page_item page-item-164\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/disclosure\/\">Director&#8217;s and Shareholders&#8217; Disclosure Obligations<\/a><\/li>\n<li class=\"page_item page-item-165\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/advising-restructuring\/\">Advising on Restructuring and Holding Structures<\/a><\/li>\n<li class=\"page_item page-item-166\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/pre-ipo-suitability\/\">Pre-IPO Submission on Suitability for Listing<\/a><\/li>\n<li class=\"page_item page-item-167\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/publicity-requirements\/\">Publicity Requirements During Listing Process<\/a><\/li>\n<li class=\"page_item page-item-168 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/\">On-Going Announcement Requirements For Listed Companies<\/a><\/li>\n<\/ul>\r\n<\/div> [\/et_pb_text][et_pb_text admin_label=&#8221;News Title&#8221; module_class=&#8221;content2-news-title&#8221; _builder_version=&#8221;4.4.3&#8243;]<h1 class=\"content-subtitle\">Read our latest News<\/h1>[\/et_pb_text][et_pb_blog fullwidth=&#8221;off&#8221; posts_number=&#8221;6&#8243; include_categories=&#8221;23&#8243; show_author=&#8221;off&#8221; show_categories=&#8221;off&#8221; show_excerpt=&#8221;off&#8221; show_pagination=&#8221;off&#8221; admin_label=&#8221;News Thumbs&#8221; module_class=&#8221;cu-blog&#8221; _builder_version=&#8221;4.4.2&#8243;][\/et_pb_blog][et_pb_text admin_label=&#8221;Click more news&#8221; _builder_version=&#8221;4.4.2&#8243;]<div class=\"bottom-click-more\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/news\/\">Click here to read more News<\/a><\/div>[\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;1_3&#8243; _builder_version=&#8221;3.25.3&#8243; custom_padding=&#8221;|||||false&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_image src=&#8221;\/legal\/listing\/directors_and_Shareholders_disclosure.jpg&#8221; admin_label=&#8221;Side Hero&#8221; module_class=&#8221;side-hero-wrapper&#8221; _builder_version=&#8221;4.4.3&#8243;][\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section]","protected":false},"excerpt":{"rendered":"<p><ul><li><a href=\"\/\">Home<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/listings\/' title='Listings'>Listings<\/a><\/li><li><span>Director&#8217;s and Shareholders&#8217; Disclosure Obligations<\/span><\/li><\/ul> Listings Listings <ul class=\"cm-parent\"><li class=\"page_item page-item-157\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/likely-cost\/\">Likely Cost of Submission<\/a><\/li>\n<li class=\"page_item page-item-158 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/\">Advising on Requirements for Listing<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-185\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/listing-key-requirements\/\">Key Requirements for Listing<\/a><\/li>\n\t<li class=\"page_item page-item-181\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/management-requirements\/\">Management Requirements for Mineral Companies<\/a><\/li>\n\t<li class=\"page_item page-item-182\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/reqirements-resources\/\">Requirements Relating To Resources and Reserves<\/a><\/li>\n\t<li class=\"page_item page-item-183\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/valuations\/\">Valuations<\/a><\/li>\n\t<li class=\"page_item page-item-184\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/requirements-control-assets\/\">Requirements Regarding Control Over Mining Assets<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-159\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/manage-process\/\">Managing the Process<\/a><\/li>\n<li class=\"page_item page-item-160\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/connected-transactions\/\">Connected Transactions<\/a><\/li>\n<li class=\"page_item page-item-161\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/management-requirements\/\">Management Requirements<\/a><\/li>\n<li class=\"page_item page-item-162\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/asset-spinoff\/\">Advising on Asset &#8220;Spin Offs&#8221;<\/a><\/li>\n<li class=\"page_item page-item-163\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/advising-directors\/\">Advising Directors<\/a><\/li>\n<li class=\"page_item page-item-164\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/disclosure\/\">Director&#8217;s and Shareholders&#8217; Disclosure Obligations<\/a><\/li>\n<li class=\"page_item page-item-165\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/advising-restructuring\/\">Advising on Restructuring and Holding Structures<\/a><\/li>\n<li class=\"page_item page-item-166\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/pre-ipo-suitability\/\">Pre-IPO Submission on Suitability for Listing<\/a><\/li>\n<li class=\"page_item page-item-167\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/publicity-requirements\/\">Publicity Requirements During Listing Process<\/a><\/li>\n<li class=\"page_item page-item-168 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/\">On-Going Announcement Requirements For Listed Companies<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-191\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/chapter-18\/\">Chapter 18 \u2013 On-going Announcements<\/a><\/li>\n\t<li class=\"page_item page-item-192\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/notifiable-connected-and-other-transactions\/\">Notifiable, Connected and Other Transactions<\/a><\/li>\n\t<li class=\"page_item page-item-193\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/company-matters-corporate-governance-and-directors-and-officers\/\">Company Matters, Corporate Governance and Directors and Officers<\/a><\/li>\n\t<li class=\"page_item page-item-194\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/shares\/\">Shares<\/a><\/li>\n<\/ul>\n<\/li>\n<\/ul> Director&#8217;s and Shareholders&#8217; Disclosure ObligationsThe Directors and shareholders of Hong Kong listed mineral companies are subject to a series of continuing disclosure obligations. These include a continuing obligation to disclose interests in shares, price sensitive information, and information in relation to issues under Chapter 18 of the HKEX Listing Rules. Disclosure of Interests Under Part [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":155,"menu_order":7,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<!-- wp:paragraph -->\r\n<p>The Directors and shareholders of Hong Kong listed resource companies are subject to a series of continuing disclosure obligations. These include a continuing obligation to disclose interests in shares, price sensitive information, and information in relation to issues under Chapter 18 of the Listing Rules.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:heading -->\r\n<h2>Disclosure of Interests<\/h2>\r\n<!-- \/wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Under Part XV of the Securities and Futures Ordinance (\"Cap. 571\") (\"SFO\") substantial shareholders are required to disclose interests in shares of listed corporations. Directors and chief executives of a listed corporation are required to disclose interests in shares and debentures of the listed corporation and its associated corporations.<br><br>The SFC has issued a detailed <a href=\"\/\/en-rules.sfc.hk\/net_file_store\/new_rulebooks\/h\/k\/HKSFC3527_2980_VER10.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">practical guide<\/a> on the application of Cap 571 of the SFO.<br><br>For additional information please refer to our note on <a href=\"https:\/\/charltonsnaturalresources.com\/images\/stories\/Documents\/Disclosure_of_Interests_under_SFO.odt\" target=\"_blank\" rel=\"noreferrer noopener\">Disclosure of Interests under the Securities and Futures Ordinance<\/a><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Paragraphs 45 of Part A, 38 of Part B and 49 of Part C of <a href=\"http:\/\/www.hkex.com.hk\/eng\/rulesreg\/listrules\/mbrules\/documents\/appendix_1a.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Appendix 1<\/a> and paragraph 13 of <a href=\"http:\/\/www.hkex.com.hk\/eng\/rulesreg\/listrules\/mbrules\/documents\/appendix_16.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Appendix 16<\/a> of the Listing Rules require issuers to disclose, in certain listing documents and annual and interim reports, details of substantial shareholders' and certain other persons' interests and short positions in the shares and underlying shares of the issuer and directors' and chief executives' interests and short positions in the shares, underlying shares and debentures of theissuer and any associated corporation, as recorded (or, in the case of a new listing, to be recorded) in the registers required to be kept under sections 336 and 352 of the SFO, subject to certain stated exceptions or waivers that may be given by the Exchange. Certain circulars to shareholders may also be required to contain such information. The Exchange has issued a <a href=\"http:\/\/www.hkex.com.hk\/eng\/rulesreg\/listrules\/mbrules\/documents\/pn_5.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Practice Note <\/a>on the types of information to be disclosed.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:heading -->\r\n<h2>Disclosure of Price Sensitive Information<\/h2>\r\n<!-- \/wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>A new statutory regime governing listed corporations' (corporations) disclosure of price sensitive information (referred to in the new legislation as \"inside information\") (PSI) came into effect on 1 January 2013. The regime is set out in a new Part XIVA to the SFO which is implemented under <a href=\"https:\/\/charltonsnaturalresources.com\/images\/stories\/Documents\/Listing\/SFAmendmentO2012.pdf\">Part 2 of the Securities and Futures (Amendment) Ordinance 2012 (Amendment Ordinance) <\/a>which was gazetted on 4 May 2012.The new regime creates a statutory obligation on corporations to disclose PSI to the public, as soon as reasonably practicable after PSI has come to their knowledge. Breaches of the PSI disclosure requirement are dealt with by the Market Misconduct Tribunal (MMT) which is able to impose a number of civil sanctions including a maximum fine of HK$8 million on the corporation and on its directors and chief executive in certain circumstances. The new statutory regime seeks to counter allegations that the existing Listing Rules' framework lacks \"regulatory teeth\" and reflects developments in other international markets.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Under the amended SFO, the Securities and Futures Commission (the SFC) is able to directly institute proceedings before the MMT to enforce the PSI disclosure requirement and to deal with the six types of market misconduct under Part XIII SFO with took effect on 4 May 2012. Previously only the Financial Secretary could institute proceedings before the MMT.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The SFC has published <em><strong>Guidelines on Disclosure of Inside Information (SFC Guidelines)<\/strong><\/em> to assist corporations to comply with the new disclosure obligation. \u00a0The Amendment Ordinance also makes certain consequential amendments to the SFO. These include amending the definition of \"business day\" to exclude Saturdays. This will affect (among others) the timing of giving notices of interests under the disclosure of interests regime in Part XV SFO.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>For additional analysis please refer to <a href=\"http:\/\/www.charltonslaw.com\/en\/newsletters\/20120511\/20120511-NewsLetter-HKLaw-detail.html\" target=\"_blank\" rel=\"noreferrer noopener\">our newsletter<\/a> on the change to the PSI regime.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:heading -->\r\n<h2>Continuing Disclosure Obligations of Listed Mineral Companies<\/h2>\r\n<!-- \/wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>In January 2013 the Exchange issued <a href=\"http:\/\/www.hkex.com.hk\/eng\/rulesreg\/listrules\/listguid\/Documents\/gl47-13.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Guidance Letter GL47-13 <\/a>in relation to the continuing disclosure obligations of listed Mineral Companies (as defined in the Listing Rules) and other listed issuers that publicly disclose details of resources and\/or reserves. The Exchange also published seven <a href=\"https:\/\/charltonsnaturalresources.com\/en\/disclosure\/5-charltons-boutique-hong-kong-solicitors\/listing\/134-listing-decisions\">Listing Decisions<\/a> (the Decisions) in relation to issues under Chapter 18 of the Listing Rules. These concerned for the most part proposed acquisitions by Main Board listed companies of mineral assets in transactions which constituted reverse takeovers for the purposes of the Listing Rules. The Decisions therefore considered various issues which arose in relation to whether the target companies were able to meet the requirements for a new listing applicant under Chapter 18.<\/p>\r\n<!-- \/wp:paragraph -->","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"categories":[29],"class_list":["post-164","page","type-page","status-publish","hentry","category-listings","cat-29-id"],"_links":{"self":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/comments?post=164"}],"version-history":[{"count":20,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/164\/revisions"}],"predecessor-version":[{"id":232994,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/164\/revisions\/232994"}],"up":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/155"}],"wp:attachment":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/media?parent=164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/categories?post=164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}