Singapore Law Blog

The Council on Corporate Disclosure and Governance (CCDG) is seeking public feedback on its review of the quarterly reporting requirement.

Background

2. Following the CCDG’s media release dated 17 November 2005, the Review Committee set up by the CCDG has submitted its preliminary discussions to the CCDG. The composition of the Review Committee is at Annex. Apart from presenting the arguments for and against quarterly reporting, the Review Committee has recommended seeking feedback from listed companies and users of quarterly reports on their experiences with the quarterly reporting requirement.

Consultation Paper

3. The Review Committee has prepared a public consultation paper and questionnaire. The paper, which comprises five parts, has also been posted on the CCDG website at http://www.ccdg.gov.sg/news/consultation.htm.

4. Part 1 of the consultation paper asks for the profile of respondents – whether they are listed companies, users of quarterly reports or others. Part 2 highlights and seeks feedback on issues relating to quarterly reporting, namely:

• Benefit to investors
  
• Benefit to companies
  
• Cost of quarterly reporting
  
• Short-termism
  
• Volatility of share prices
  
• Alignment with global standards.

5. Part 3 presents and seeks views on the alternatives and options to quarterly reporting, such as:

• Ensuring that the requirement to make ad-hoc disclosures of price sensitive information is properly policed
  
• Clarifying that companies need not hold briefings or issue publicity statements for quarterly announcements
  
• Allowing shareholders to decide whether to have quarterly reports
  
• Shortening the time frames for half-yearly and annual reports
  
• Allowing companies to hold quarterly meetings

6. Part 4 considers whether listed companies with market capitalisation of $75 million and below should be required to do quarterly reporting. Part 5 shows the full list of questions for feedback. The questions are categorised into general questions, questions for listed companies, and questions for users of quarterly reports.

Invitation for Comments and Feedback

7. The CCDG would like to invite interested parties to provide their comments and feedback via email to Feedback_CCDG@acra.gov.sg. Respondents may request confidentiality for the whole or part of their submission to be made public. However, the CCDG may still publish a summary of key comments received without identifying individual respondents.

8. Mr J Y Pillay, Chairman of both the CCDG and the RC, said: “I would urge all parties who have an interest in this subject to use this opportunity to give us their views and feedback.” The public consultation will remain open until 28 February 2006.

Issued by : Council on Corporate Disclosure and Governance
Date : 13 January 2006