48 Ongoing Requirements and Responsibilities Continuous and timely disclosure Unlike a privately held company, a publicly traded company must provide timely ongoing reporting about its financial position and any material information that could impact share price or activity. A high degree of detail is necessary so the investing public has enough information to make an informed decision. This concept is known as “full, plain and true disclosure,” and it’s the principle on which the Exchanges operate. Besides giving information to shareholders, a company’s periodic report helps build public confidence and encourage efficient company management. A listed company is obligated to provide: • a complete picture of financial dealings and the results of operations; • details of executive compensation packages, including options to buy shares; • timely disclosure of material information; • details of transactions of any insiders who exercise their rights to trade shares Securities regulations in Canada call for a great deal of transparency. Investors around the world can easily access any public company’s securities filings, including quarterly and annual financial reports, prospectuses and, for mining companies, comprehensive technical reports. Securities-related information filed with the Canadian Securities Administrators (CSA) is visible to the public via the SEDAR (System for Electronic Document Analysis and Retrieval) website at www.sedar.com. Once your company is listed on TSX or TSXV, it will be a reporting issuer with ongoing reporting and disclosure obligations. These obligations arise under both securities law and the requirements of the Exchanges. Accordingly, the obligations will result in filing required information with the securities commissions, the Exchanges, or both. The documents that reporting issuers must file as part of their continuous and timely disclosure responsibilities include: DOCUMENTS REQUIRED Annual and interim financial statements Annual financial statements must be audited. While there is no requirement for the reporting issuer’s auditor to review interim financial statements, if the auditor did not review them, this fact must be disclosed. Management Discussion and Analysis (MD&A) Securities commissions in Canada have specific rules regarding what must be included in the MD&A. The MD&A is management’s narrative explanation of the reporting issuer’s financial condition and future prospects. The objective in preparing the MD&A is to improve the issuer’s overall financial disclosure by giving a balanced discussion of the operating results and financial condition. Annual Information Form (AIF) An AIF is a disclosure document intended to provide material information about the issuer and its business at a point in time, in the context of its historical and possible future development. The AIF describes the company, its operations, prospects, risks and other external factors that impact the company specifically. The AIF disclosure is supplemented throughout the year with continuous disclosure filings including news releases, material change reports, business acquisition reports, financial statements and MD&A. All TSX issuers are required to file an AIF. In addition, a current AIF is necessary for short form prospectus financings. For TSXV issuers, AIF submissions are optional.
RkJQdWJsaXNoZXIy MjgzMzQ=