ECSRC Issues Reporting Rules For Public Companies

In an effort to ensure that investors have access to full information when making investment decisions, the Eastern Caribbean Securities Regulatory Commission (ECSRC) has issued new reporting and disclosure requirements for public companies.

The Commission requires that all public companies file an annual report, within one hundred and twenty days of their financial year-end and a semi-annual report, no later than thirty days after the first half of the financial year. Companies must also advise the Commission of any significant changes in a "Material Change report", within seven days of the event, and provide shareholders with an annual audited financial statement.

The Securities Act 2001 stipulates that all public companies should complete a process of registration with the Commission. Companies must file a registration statement providing basic information about their operations, including the date and place of incorporation, the management team, and the main line of business. The statement should also include a summary of past offerings of securities, the size of the company's capitalization and the names of any substantial shareholders. New public companies will also be required to comply with the registration process within ninety days of the date of incorporation. Updated statements must be submitted annually, reflecting any changes that occur during the course of the year.

Any Company wishing to issue securities to the public must first file a registration statement along with a prospectus with the Commission. The information in the reports and the registration statements will be available to the public through the Commission.