The National Equities Exchange and Quotations Co., Ltd. ("NEEQ") has recently issued the Questions and Answers on Information Disclosure and Accounting Business for Listed Companies (V): Disclosure of Information on the Pledge and Freezing of Equities (the "Q&A (V)"), immediately effective from the issue date.
The Q&A (V) responds to four questions, including "when shares of a NEEQ-listed company held by any of its shareholders are pledged or frozen, which triggers the obligation to disclose information, whether the company's shareholder concerned needs to notify the company of the necessity to fulfill and cooperate with the company in fulfilling information disclosure obligations" and "how to ensure the timeliness of information disclosure for a NEEQ-listed company, as the Rules on Information Disclosure for NEEQ-listed Companies provide that a NEEQ-listed company shall fulfill its information disclosure obligations within two transfer days from the occurrence of the pledge or freezing of equities". According to the Q&A (V), in the event that a director, a supervisor or a senior executive of a NEEQ-listed company knows the fact that over five percent of the company's shares held by a shareholder have been pledged or frozen, they shall report this situation to the board of directors or the board of supervisors of this company in time, and urge the company to fulfill information disclosure obligations pursuant to applicable rules.