Canadian Securities Administrators Provide Clarification On Time for Delivering Annual Financial Statements
|Area||Corporate and Commercial, Corporate Finance and Securities, Shareholder Rights and Activism|
The Canadian Securities Administrators ("CSA") recently issued a Staff Notice which provides clarification on the time for delivering annual financial statements and MD&A to securityholders under National Instrument 51-102 Continuous Disclosure Obligations ("NI 51-102").
Upon coming into force on March 30, 2004, NI 51-102 shortened the deadline by which an issuer is required to file its annual financial statements and MD&A from 140 days to 90 days after the issuer's financial year-end (120 days for venture issuers). Issuers are also required to send these materials to any securityholders who have requested them by the filing deadline. These new annual filing deadlines have created difficulties for issuers which normally mail their financials in a glossy annual report together with proxy material for the annual meeting. A single mailing within the new deadline would require the normal timing of the annual meeting to be advanced. In the Staff Notice, the CSA provide a temporary resolution to this issue.