ISA and TASE Publish Reliefs for Public Companies and Reporting Corporations

Barnea Jaffa Lande & Co.

In light of the global coronavirus crisis, the Israel Securities Authority (ISA) has published several steps toward easing the burden on public companies and reporting corporations whose securities are traded on the Tel Aviv Stock Exchange.

The ISA granted an extension to companies to publish their annual reports for the fiscal year 2019 until April 30, 2020 (instead of March 31, 2020), as well as an extension for the quarterly report for the first quarter of the year 2020 until June 30, 2020 (instead of May 31, 2020). For further reading, click here.

Furthermore, companies are permitted to hold, during the limitations period, general meetings of shareholders and bondholders through remote communication, in a manner that enables all participants of the meeting to hear each other in real time.

In addition, the ISA has permitted for the time being the execution of independent purchase transactions by supervised companies close to the period before the publishing of financial reports, as long as such companies have published preliminary financial reports, which include the main financial information set in accordance with the ISA staff position.

Another condition is that such companies do not hold other material information before the execution of an independent purchase transaction, such as information regarding a significant negotiation whose publication was withheld. For further reading, click here.

Further, under the emergency regulations passed on March 25, 2020, shelf prospectuses set to expire during the period between March 10, 2020, and May 10, 2020, will be extended by two additional months, during which time use of the prospectus may be made.

At the same time, in light of companies’ difficulties in meeting the maintenance rules and the difficulties of companies already on the Maintenance List to take steps to meet the requirements to return to the main list, the Tel Aviv Stock Exchange (TASE) has published a proposal for public comments on the Provisional Order For Easing Maintenance Rules and the Delisting of Companies.

The TASE proposes to set a provisional order valid until December 31, 2020, whereby the next examination of companies meeting the maintenance rules will be delayed until January 2021, in accordance with the companies’ data for December 31, 2020. In addition, an extension will be granted for meeting the threshold to be placed back on the main list for companies whose first maintenance period ends in 2020. Also, the dates for delisting will be postponed until December 31, 2020.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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