A member asked over 7 years ago

asx listing

Regarding an ASX listed company that was suspended 3 years ago for failure to disclose, is it possible to be relisted on the ASX if financial reports and other statements are uploaded now?

Law Advisor Research Team
Researchers at LawAdvisor

Hi there. The Australian Securities Exchange (ASX) is regulated by a strict set of rules that are strongly enforced by the market operator. These rules specify the manner in which a company may be listed, the obligations on a company whilst listed, and the circumstances in which a company may be suspended or removed from the ASX.

A company may be suspended from quoting their shares on the ASX for various reasons, such as a failure to comply with their continuous disclosure obligations or another breach of the exchange rules. A suspension does not amount to an automatic removal of the company’s shares from the exchange. A suspension may be temporary and the company may be eligible to resume trading their shares without making a new application for listing to the ASX. Resuming trade will depend on a range of factors, such as the reason for the initial suspension and whether any additional obligations must be complied with before trading can resume.

Being suspended is different to being removed from the official list of the ASX. If a company has been removed from the official list of the ASX, the company would need to apply to the ASX for admission to the official list and the application would have to be granted before the company’s shares could be traded again.

Suggested way forward

The rules regulating ASX admission, trading and suspension are complicated, and breaching those rules can result in serious penalties. You should consider obtaining the expert assistance of a corporate lawyer who can help you navigate this complex area of law. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.

Answered over 7 years ago   Legal disclaimer

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