Entire Section

  • Loan agreements with covenants relating to specific performance by the controlling shareholder (17.20)

    • 17.20

      Where an issuer or any of its subsidiaries enters into a loan agreement that includes a condition imposing specific performance obligations on any controlling shareholder (e.g. a requirement to maintain a specified minimum holding in the share capital of the issuer) and breach of such an obligation will cause a default in respect of loans that are significant to the issuer's operations, the issuer must immediately thereafter announce the following information:—

      (1) the aggregate level of the facilities that may be affected by such breach;
      (2) the life of the facility; and
      (3) the specific performance obligation imposed on any controlling shareholder.