Continuous Disclosure & Confidentiality Issues in Joint Ventures

There has been a great deal of debate regarding the revised language of Listing Rule 3.1; many fear the wording of the new rules creates too much uncertainty. While the provisions have not been, and probably cannot be, tested in all circumstances, experience suggests that we can predict with a high degree of certainty how the new rules will work in practice and set in train processes to ensure compliance with the disclosure obligations, even having regard to competing disclosure pressures inherent in some business practices, such as co-ownership arrangements. While many say continuous disclosure in this market has gone too far, they are by and large jumping at shadows; generally the disclosure levels of Australian companies are about right and the ASX administers its rules in a way that is not as frightening or onerous as many commentators have suggested. Australian businesses should support and encourage our model in preference to any other. Continuous disclosure in Australia is regarded by many as world's best practice. The success of our disclosure system has enabled us to avoid the distortions of quarterly reporting and many of the more recent onerous US provisions. Joint venture participants face competing pressures to preserve the confidentiality of their ventures and to keep the market informed. There are a number of simple internal communication controls that can be put in place to manage the disclosure obligations of JV participants. Implementation of such controls and an understanding of the way the ASX applies disclosure rules can ensure companies avoid embarrassment