ASIC releases policy on disclosure in reconstructions

ASIC has released a policy statement regarding disclosure in reconstructions or capital reductions involving an issue of securities.

Disclosure in reconstructions [PS 188] confirms invitations to vote on an issue of securities constitute an ‘offer’ for the purposes of the prospectus provisions of the Corporations Act. This means a prospectus must accompany the notice of meeting.

‘Reconstructions’ are not formal schemes of arrangement under Pt 5.1 of the Act, but bear similarities to them. A foreign scheme of arrangement or a trust scheme is a reconstruction.