Quote:
Originally Posted by Maggy J
The end result is that we as taxpayers get to sort out the workers one way or another...and we didn't cause the problems in the first place..As for due diligence I thought it was a crime to misrepresent how well a company is doing to any company thinking of buying it..If it isn't it's well past time it was and well past time any regulators did something about it.
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It is indeed.
Making announcements
The FSA’s
Disclosure and Transparency Rules oblige directors to make certain announcements to avoid the creation of a false market in the company’s shares. Similar rules apply in the case of AIM companies. Bad news, in other words, cannot be kept hidden.
Announcing that a dividend might not be paid on a listed preference share, or that a company is in discussion with its bankers, will obviously have a marked effect on creditor confidence, and directors will need to consult their advisers about the timing of announcements.
They must, however, never lose sight of the fact that they can be guilty of a criminal offence if they:
- make any statement, promise or forecast they know to be materially misleading, false or deceptive;
- recklessly make (dishonestly or otherwise) any statement, promise or forecast that is materially misleading, false or deceptive;
- dishonestly conceal any material facts.
In each of these cases, directors will be guilty if they deliberately induced another person to deal in securities in a company on the basis of false information – or they were careless about what they said and its effect on investor behaviour. (See our series of guides on
The FSA and Securities Regulation.)
From
here