Listing on the London Stock Exchange (LSE) Alternative Investment Market (AIM) has provided growth funding opportunities for many smaller Australian companies. Currently there are no corporate governance requirements that an Australian company must meet for its securities to be admitted to trading on the AIM.
This is changing. By 28th September 2018, all AIM companies must provide details of a recognised corporate governance code that the board of directors of the AIM company has decided to apply.
“If not, why not”
Each AIM company must also state how they comply with that code, and where it departs that code, an explanation of the reasons for doing so. The code must be reviewed annually, with the latest review date stated clearly.
Why the change?
The LSE is of the view that good standards of corporate governance play a significant role in the long-term success of the company. See link to LSE AIM notice HERE.
The LSE decided that there should not be a prescribed list of recognised codes, rather each AIM company should design a code to suit their specific stage of development, sector and size. The governance code for Australian companies is likely to be the ASX Australian corporate governance principles.
There are currently around 50 Australian companies listed on AIM. Those, and any other company wishing list on AIM, have until 28th September to comply.© Guerdon Associates 2021 Back to all articles