Crucial continuous disclosure question – is the information material?

The High Court finding this week that continuous disclosure does not apply when a listed company is in voluntary administration is a reminder that only "material" information must be disclosed.

The case

The Financial Markets Authority (FMA) applied to the High Court for an opinion on whether the continuous disclosure obligations under the NZX Listing Rules continue to apply to listed issuer CBL Corporation Limited after it entered voluntary administration.

The FMA quoted Australian case law confirming the practical benefit of construing continuous disclosure provisions broadly and the need in all circumstances for the timely disclosure of price or market sensitive information.