Shareholders of listed companies have an obligation to notify both FIN-FSA and the listed company of changes in their holdings and voting rights. Listed companies have an obligation to publicly disclose the shareholder's notification.
This disclosure provision is designed to ensure that shareholders have access to information on the ownership and policy structures of the listed company and any changes therein. Disclosures also provide the shareholder with information for example on changes in voting rights and the liquidity of the company's stock and any changes therein. Considering the material impact that the information may have on the value of the listed company's shares, the disclosure obligation offers shareholders an opportunity to make advance provision for changes in the value of their shares.
Under the provisions of the Securities Markets Act, changes in holdings must be disclosed when the holding reaches, exceeds or falls below 5, 10, 15, 20, 25, 30, 50 or 90 per cent or two thirds of the voting rights or the numbers of shares of the company.
Notifications of changes in holdings or voting rights must be made without undue delay.