Timely Disclosure Requirements: A Refresher And Best Practices

This article provides a brief summary of the Toronto Stock Exchange (TSX) timely disclosure requirements and discusses (i) the circumstances in which an issuer may delay the disclosure of confidential information, (ii) market surveillance pre-notification procedures, and (iii) issues relating to the timing of board meetings and the disclosure of material information.

Background

The TSX's timely disclosure requirements are based on the concept of "material information", which is comprised of the concepts of "material fact" and "material change". These latter two are distinct concepts that are defined in provincial securities legislation. Generally, they refer to either (i) a fact, or (ii) a change in the business, operations or capital of an issuer that in each case, if disclosed, would reasonably be expected to have a significant effect on the market price or value of an issuer's securities.