Article by Ms Philippa Stone and Mr Philip Hart
The ASX's Exposure Draft titled Capital raising mechanisms in a disclosure-based market – ASX proposals for informed choice was released on 20 October 2003.
The purpose of the Exposure Draft is to release for public comment proposed changes to Chapter 7 of the Listing Rules. The ASX states that the amendments are designed to 'facilitate flexibility in the structuring of capital raising mechanisms to better accommodate the capital raising needs of a diverse range of ASX listed companies'.
This article outlines the major changes proposed by the ASX.
Proposed amendments
Listing Rule 7.1
The ASX has proposed a number of key amendments to Listing Rule 7.1. Listing Rule 7.1 currently provides that a listed entity may issue not more than 15 per cent of its issued capital in any 12-month period, without the approval of security holders.
