4.3 When to ask for a voluntary suspension An entity should...

4.3 When to ask for a voluntary suspension An entity should consider requesting a voluntary suspension:  whenever it is necessary to manage its continuous disclosure obligations under Listing Rules 3.1-3.1B and to avoid trading in its securities happening on a basis that is not reasonably informed; and  where it anticipates not being able to make an announcement to satisfy those obligations for a longer period than the maximum permitted duration of a trading halt (generally two trading days or, in those exceptional circumstances where ASX agrees to grant back-to-back trading halts, four trading days). An entity should also consider requesting a voluntary suspension if it has been in a trading halt pending an announcement and it becomes clear that it will not be in a position to make the anticipated announcement before the end of the trading halt. Entities should be aware that one of the conditions of their eligibility:  to offer securities without a disclosure document or product disclosure statement under a ‘low-doc’ rights issue (sections 708AA or 1012DAA of the Corporations Act) or under a share or interest purchase plan (ASIC Class Order 09/425); or  to rely on the ‘cleansing notice’ provisions in relation to a secondary sale of securities issued without a disclosure document or product disclosure statement under a placement (sections 708A(5) or 1012DA(5) of the Corporations Act), is that their securities have not been suspended for more than a total of five days during the shorter of the period during which the class of securities was quoted, and the 12 month period before the relevant offer or issue.22 A voluntary suspension with therefore eat into this five day period. Aside from this one issue,23 a voluntary suspension should not be perceived as a less attractive option for managing continuous disclosure obligations than a trading halt. The statement to the market advising of a voluntary suspension will clearly indicate that it has been put in place at the entity’s request and set out the reason for the request. A voluntary suspension will generally only be granted for the period ASX considers reasonably necessary for an entity to manage its continuous disclosure obligations. 19 See note 8 above. 20 If the quotation of a security is suspended on the expiry date for an exchange traded option over that security, ASX may open trading in the option for a short period to allow option holders to close out or roll their option positions. 22 See ASIC Regulatory Guide 173 Disclosure for on sale of securities and other financial products for guidance on when ASIC will consider granting case-by-case relief in relation to secondary sales when an entity’s securities have been suspended for more than five days. 23 The concerns that once applied to voluntary suspensions that they might result in a loss of the ability to issue a transaction specific prospectus no longer apply (see ASIC Regulatory Guide 66 Transaction Specific Disclosure). ASX Listing Rules Guidance Note 16 Page 9 1 May 2013