- Who is affected
- Directors and management of SGX-listed issuers, and their sponsors and advisers.
Summary
Guidance by SGX on Cessation Announcements of Key Persons Issues with cessation of key officers and directors were discussed by SGX via sponsor dialogues (i.e. 8 May 2019 and 12 November 2019). Recommended practices for issuers and sponsors were provided together with certain disclosures that may lead to SGX queries or investigations. Issuers are to note that SGX is of the view that cessation announcements constitutes as material information and it is considered a timely disclosure under the listing rules, when appointment or cessation of Key Persons (i.e. director, chief executive officer, chief financial officer, chief operating officer, general manager or other executive officer of equivalent authority, company secretary, registrar or auditors of the issuer) are announced immediately.
Recommended Practices by SGX (For Issuers) 1. Immediate Announcement. Issuers should announce immediately the appointment or cessation of a Key Person and SGX recommends issuers to include the notice period. 2. Avoid Boilerplates. Boilerplate reasoning includes ‘personal reasons/ pursue personal interest’. 3. Announcement should NOT be on the Effective Cessation Date. Issuer should announce the resignation of the Key Persons as soon as there is an agreement/certainty between the issuer and the resignee. It is NOT REASONABLE to assume that disclosure is only triggered on the effective cessation date.
This update is a summary of publicly available regulatory guidance prepared by SAC Capital Private Limited for general information. It is not legal advice. Issuers should refer to the SGX Listing Rules and consult their sponsor or legal adviser.