When must full disclosure occur for a Class 2 transaction?

Full disclosure for a Class 2 transaction must occur as soon as the agreement is made to ensure transparency and inform all relevant stakeholders promptly. This requirement aligns with the principles of maintaining investor confidence and promoting fair trading practices within the market. The immediacy of disclosure is vital, as it allows shareholders and potential investors to make informed decisions based on the latest material information. Timely disclosure is essential for upholding the integrity of the market and protecting investors from potential misrepresentation or lack of awareness regarding significant corporate actions.

Other options suggest different timings for disclosure that would not meet the regulatory requirements. For instance, waiting until after shareholder approval or before submitting a prospectus would allow for gaps in information sharing, thereby potentially misleading investors. Additionally, disclosing information only at the end of the trading year would delay critical information dissemination and fail to uphold regulatory standards related to timely and accurate disclosure of material agreements.