29 April 2008
CONFLICT OF INTEREST REGULATION
Bapepam has given indication to answering the market needs relating to conflict of interest transactions by issuing draft* on the amendments to the provisions regarding conflict of interest transactions.
The significant change, much awaited by business actors, lies in the exceptions made as to the term conflict of interest transactions. While the previous provisions only provide for certain types of transactions (which are classified as conflict of interest transactions), now Bapepam, as indicated in this first draft, considers that there are some economic benefits out of the transactions, such that transactions which bring in economic benefits to Issuers are to be exempt from the term conflict of interest transaction.
These include recurring and continual transactions closed at such prices and on such terms previously agreed, duly audited by the company’s internal auditors, and reported before its annual general meeting of shareholders. Thus, any such transactions will be exempt from the applicability of such procedures for conflict of interest transactions.
CONFLICT OF INTEREST REGULATION
Bapepam has given indication to answering the market needs relating to conflict of interest transactions by issuing draft* on the amendments to the provisions regarding conflict of interest transactions.
The significant change, much awaited by business actors, lies in the exceptions made as to the term conflict of interest transactions. While the previous provisions only provide for certain types of transactions (which are classified as conflict of interest transactions), now Bapepam, as indicated in this first draft, considers that there are some economic benefits out of the transactions, such that transactions which bring in economic benefits to Issuers are to be exempt from the term conflict of interest transaction.
These include recurring and continual transactions closed at such prices and on such terms previously agreed, duly audited by the company’s internal auditors, and reported before its annual general meeting of shareholders. Thus, any such transactions will be exempt from the applicability of such procedures for conflict of interest transactions.
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