Category

Securities

Category

The Australian Securities Exchange (ASX) has amended its Listing Rules to implement changes to its admission requirements which took effect from 19 December 2016. Key changes are: increasing the requirement for profit test entities to have consolidated profits for the 12 months prior to admission from A$400,000 to A$500,000 amending the requirements to satisfy the assets test by increasing: the net tangible assets (NTA) requirement from A$3 million to A$4 million; or the market capitalisation…

Recent development

As previously reported, Turkey has established its Sovereign Wealth Fund (Türkiye Varlık Fonu) (the “Sovereign Fund”) and the Turkish Sovereign Wealth Fund Management Incorporation (Türkiye Varlık Fonu Yönetimi Anonim Şirketi) (the “Asset Manager”), its asset management company. On November 9, the Council of Ministers’ decree regarding the Asset Manager’s operating principles(“Decree”) was published in the Official Gazette.

Recent development

In an effort to provide financing for infrastructure, diversify the financial instruments, and increase the depth of capital markets, Turkey introduced the Law on the Establishment of Turkish Sovereign Wealth Fund (the “Law”) on August 26, 2016. The Law establishes the Turkish Sovereign Wealth Fund (Türkiye Varlık Fonu / “Sovereign Fund”) and the Turkish Sovereign Wealth Fund Management Joint Stock Company (Türkiye Varlık Fonu Yönetimi Anonim Şirketi / “Management Company”), its asset management company.

New restricted stock

On April 28, 2016, Japan’s Ministry of Economy, Trade and Industry (METI) published a Guidebook for Introducing New Stock Compensation (restricted stock) as Board Members’ Compensation to Encourage Companies to Promote Proactive Business Management.

Restricted stock is a type of incentive compensation to executives in the form of stock, which they are prohibited from disposing of for a certain period of time.

Amendments to Japanese tax laws effective April 1, 2016 made the issuance of restricted stock to executives permissible where:

  1. The issuing corporation can claim the compensation as a deductible expense; and
  2. It is a taxable event to executives when they are able to dispose the shares of the stock.