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14 December, 1984

News release

Securities Commission clarifies news report on information delays in sharemarket

The Chairman of the Securities Commission, Mr. Colin Patterson, said today that he wanted to clarify a report in the "Star" that he was concerned about delay in information coming to the share market. Some people had taken this to refer to the agreement by DB to sell its Mount Cook shares to the Goodman Group, but he had no reason to doubt that DB had promptly reported this to the Stock Exchange.

"I want to make it clear that I was not referring to that agreement. I was referring to the claim that Air New Zealand has an option or right over DB's shares which formed the basis of the interim injunction restraining DB from selling."

Under present law there was no obligation to report such an option or right to the company, other members or the share market. The Securities Commission wanted this to be changed to require that the granting of such options or rights will be reported without delay.

"Such options or rights, if they exist, are obviously crucial factors affecting the control of companies", he said today. "They should be made public knowledge when they are given. Disclosure when they are exercised comes too late" he said.

He also noted that DB denies that it has given such an option or right to Air New Zealand.

"At present the matter is before the High Court, and while it is there, the Commission will not intervene. However, we will continue to keep the matter under observation" he said.