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Decision in FMA and the administrators of CBL case

Press Release – Financial Markets Authority

Decision in the case stated procedure between FMA and the administrators of CBL Corporation LimitedDecision in the case stated procedure between FMA and the administrators of CBL Corporation Limited

The High Court has found that an issuer’s continuous disclosure obligations do not apply during administration.

The judge stated in his decision “that the disclosure / reporting obligations of an issuer in voluntary administration are contained within Part 15A of the Companies Act and while the issuer is in administration, the continuous disclosure obligations are suspended.”

This is the first time the FMA has brought a case stated procedure. The FMA brought the case as a means of promptly and efficiently getting an answer to a complex issue.

The FMA is grateful to the court for its prompt attention, both in providing a hearing date and issuing its findings.

The FMA would also like to thank Korda Mentha for its participation in the process. Case stated procedures are not an action taken against any particular party and it assists the court to have more than one perspective on an issue.

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