Amendments to the Australian Stock Exchange's Listing Rules came into effect on 1 September 1999.
The changes, which are aimed at removing unnecessary barriers to smaller to medium size enterprises and technology businesses, relate principally to the ASX's admission requirements. These changes are summarised below:
- A market capitalisation test of $10 million has been introduced to provide an alternative to the existing net tangible assets test of $2 million and the profit test of $1 million.
- Businesses that are unable to meet the profits test are no longer required to be in a position in which the are likely to generate revenue within three years of listing.
- The binding contracts requirement in the net tangible assets test has been removed.
- An alternative to the existing spread test of 500 holders with a parcel of $2,000 of securities has been introduced. The alternative spread test is 400 holders with a parcel of $2,000 of securities, and 25% held by non-related parties.
This is a very brief introduction to this aspect of corporations law and is not intended to be legal advice. This publication cannot be relied on as a substitute for appropriate legal advice suited to your circumstances. Given that this is the case, you should seek and retain the advice of a solicitor if you require a comprehensive and up to date analysis of the law pertaining to your circumstances
March, 2001
|
