Shareholding Disclosure Rule Toughened
Every major shareholder and executive of a non-listed company must make a public disclosure on shareholding, even in the event of no change in their stake ownership, within five days from the day of listing when the company goes public. In addition, convertible bonds and bonds with warrants are subject to the same disclosure.
The Financial Supervisory Service (FSS) announced so on Oct. 3, saying that the frequency of violations is increasing with regard to the duty of shareholding disclosure on the part of major shareholders, executives and investors in listed companies.
“Major shareholders and executives of non-listed companies that go public must report their shares, including their convertible bonds and bonds with warrants, within five days without exception, and yet there have been many cases where they do not comply with the duty,” the FSS explained, adding, “As for major shareholders, the mandatory public disclosure is applied to a shareholding of 5 percent in a listed company or a subsequent change of 1 percent or more with a specially related person’s shareholding included.”