The reason for the requirement by the ASX for companies to abide by the Corporations Act 2001 (Cwlth)is to:

Question

Quizplus · Accepted Answer

The requirement for companies to abide by the Corporations Act 2001 (Cwlth) is primarily to ensure that information which may have a material effect on the share price is provided to the market. This is aimed at ensuring transparency and fairness in the market, as well as protecting investors from insider trading and other forms of market manipulation. While maintaining investor confidence and an active market may be secondary goals of the ASX, they are not the primary reason for the requirement. The number of shareholders in the company is also not directly related to the requirement to abide by the Corporations Act.

The Reason for the Requirement by the ASX for Companies