Regulatory Disclosures:

Definitions

 

Material Events

Position: Determining whether a corporate event is material for disclosure purposes should consider all relevant qualitative — management changes or other events that may affect market prices — and quantitative — events or changes in operating performance and financial condition not to exceed 5% of total assets, revenues, shareholders equity, or net income — circumstances that may affect investors’ decisions about relative value.

Rationale: Without appropriate guidance, issuers of securities will fail to disclose important and relevant information by claiming it is immaterial or insignificant.

Where stated: EAC - PD (PDF)

 

Significant Shareowner Interest

Position: Significant shareowner interests includes holdings of at least 5% of the shares or voting rights of a company, or the ability to exercise control and influence through other means.

Rationale: Shareholders can exert significant control with as little as 5% of the voting interests, and can obtain control through agreements calling for certain shareholders to vote a certain way.

Where stated: EAC - PD (PDF)

 

Misleading Information

Position: Misleading information includes both material omissions and faulty or fraudulent presentation of data and information.

Rationale: Poor quality or missing information can mislead investors about the financial condition and performance of a company in a manner that will impair investors’ ability to make informed investment decisions in a manner similar to false statements.

Where stated: CAC - CSA Uniform Securities Legislation (PDF)