Disclosure of corporate transactions
When a DEM company makes a significant transaction, it must immediately notify the SEM and issue a press release, disclosing the information specified by Schedule Five.
Related party transactions
This rule applies to any transaction whatsoever with a related party which exceeds 10% in any of the class tests (see Schedule Four).
A DEM company must notify the SEM without delay and issue a press release as soon as the terms of a transaction with a related party are agreed disclosing:
- the information specified by Schedule Five;
- the name of the related party concerned and the nature and extent of their interests in the transaction; and
- a statement that with the exception of any director who is involved in the transaction as a related party, its directors consider that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.
A DEM company which becomes a cash company will be suspended and will be given a period of six months from the date of its suspension in which to take the necessary steps to cease to be a cash company. If at the end of the six month period, the company remains a cash company, its admission will normally be cancelled.