In brief - Treasurer Josh Frydenberg announced on 25 May
2020 that the government will temporarily amend the continuous
disclosure provisions in the Corporations
Act.
The announcement acknowledged the difficulty companies are
facing in releasing forward-looking market guidance during
COVID-19.
The Treasurer said that companies may "hold back" from
making forecasts of future earnings for fear of exposure to class
actions, therefore limiting the amount of information available to
investors.
The changes take effect from 26 May 2020 and will remain in
place for six months.
How will continuous disclosure rules change?
The Corporations Act has been temporarily amended for
six months so that companies and officers will only be liable if
there has been "knowledge, recklessness or
negligence" in relation to updates on price sensitive
information.
