Why are Officers prevented from disposing of their interests in a company’s securities for 1 year from listing?
This regulation has been put in place to ensure that business is conducted within a disciplined framework even after listing. It serves as a safeguard to prevent Officers from reducing their involvement or removing themselves altogether from the company soon after listing. Furthermore, the Officer may, if permitted by the J-Nomad, dispose of Securities, etc., within the lock-in period (i.e. at least one year after the listing). For example, on the request of the Liquidity Provider and on the assumption that the Listed Company continues to be managed and operated under a responsible framework after the listing, the Officer may release a portion of his/her holdings to provide additional liquidity and promote fair price formation in an illiquid market.
Related Questions
- Our Company had a change in Officers and/or Directors during the calendar year. When is it appropriate to stop designating the new Officers and Directors with the # symbol?
- What is meant by "appropriate system" to prevent Officers from disposing of their holdings in a company’s securities?
- When are the written statements due for the officers of a non-calendar year end company?
