The new ASX Listing Rule 10.10A should mean reduced compliance costs for listed entities which can now send electronic versions of independent expert’s reports for a related party transaction to security holders who have elected to receive their notices of meeting in electronic form.
The ASX has amended ASX Listing Rule 10.10 and introduced a new ASX Listing Rule 10.10A, to facilitate shareholder approvals for the acquisition or disposal of substantial assets involving a related party. The ASX Listing Rules now:
- require an independent expert’s report about whether a transaction is fair and reasonable to be displayed prominently in the notice of meeting and accompanying documents, regardless of the conclusion reached by the independent expert;
- make it clear that the independent expert's report required to be sent to security holders in connection with a resolution under ASX Listing Rule 10.1 can be sent in electronic form to security holders who elect to receive their notices of meeting in electronic form;
- provide that if the notice of meeting and the independent expert’s report are both provided to security holders, the independent expert’s report will be taken to have been given to security holders at the same time as the notice of meeting is taken to have been given;
- require listed entities to make the independent expert's report available on the listed entity’s website; and
- require listed entities to comply with a request by a security holder for a hard copy of the independent expert’s report at no cost to the security holder (and also to ensure that security holders are notified of this option in the relevant notice of meeting).
The amendment was effective from 1 June 2012.