New Zealand’s Financial Markets Authority (FMA) has asked the courts to determine if disclosure obligations apply to listed companies in voluntary administration.

The regulator’s action is prompted by CBL Corporation, which appointed voluntary administrators in February and has not provided market updates since.

“The circumstances surrounding the voluntary administration of CBL Corporation have illustrated the legal complexity of ensuring compliance by a listed issuer in voluntary administration,” the FMA says.

“Continuous disclosure is an important feature of a fair, orderly and transparent market.”

Providing updates, even when in voluntary administration, will allow shareholders “to make assessments of the valuation of their holdings and how they may exercise any other rights they have in relation to those holdings”, the FMA says.