logo image
  • News
    • People Moves
    • Deal Wins
    • Demand Drivers
    • M&A and Funding
    • Financial Results
    • Technology
    • Academia
    • Industry News
    • Features
    • Machine Translation
    • — Divider —
    • Slator Pro
    • — Divider —
    • Press Releases
    • Sponsored Content
  • Data & Research
    • Research Reports & Pro Guides
    • Language Industry Investor Map
    • Real-Time Charts of Listed LSPs
    • Language Service Provider Index
  • Podcasts & Videos
  • Events
    • SlatorCon Remote May 2021
    • Localizing at Scale for International Growth
    • Design Thinking May 2021
    • — Divider —
    • SlatorCon Coverage
    • Other Events
  • Directory
  • RFP Center
  • Jobs
MENU
  • News
    • People Moves
    • Deal Wins
    • Demand Drivers
    • M&A and Funding
    • Financial Results
    • Technology
    • Academia
    • Industry News
    • Features
    • Machine Translation
    • — Divider —
    • Slator Pro
    • — Divider —
    • Press Releases
    • Sponsored Content
  • Data & Research
    • Research Reports & Pro Guides
    • Language Industry Investor Map
    • Real-Time Charts of Listed LSPs
    • Language Service Provider Index
  • Podcasts & Videos
  • Events
    • SlatorCon Remote May 2021
    • Localizing at Scale for International Growth
    • Design Thinking May 2021
    • — Divider —
    • SlatorCon Coverage
    • Other Events
  • Directory
  • RFP Center
  • Jobs

Register Now for SlatorCon Remote on May 13th!

  • Slator Market Intelligence
  • Slator Advertising Services
  • Slator Advisory
  • Login
Search
Generic filters
Exact matches only
Advertisement
Australian Regulator Condemns Lack of Translation in Share Listings

5 years ago

July 25, 2016

Australian Regulator Condemns Lack of Translation in Share Listings

Demand Drivers ·

by Marion Marking

On July 25, 2016

5 years ago
Demand Drivers ·

by Marion Marking

On July 25, 2016

Australian Regulator Condemns Lack of Translation in Share Listings

You should not sign off on something you do not understand. This, in short, was a key message of a report published in early July 2016 by Australia’s Securities & Investments Commission (ASIC), Australia’s corporate, markets, and financial services regulator. The report reviewed due diligence practices of issuers of securities under an initial public offering (IPO).

An IPO is a complex process involving lawyers, bankers, and advisors and requires the review of thousands upon thousands of pages of company documents. If a company lists on a foreign stock exchange, translation requirements quickly become substantial.

Australia’s stock market (ASX) is among the world’s top 15 with a market capitalization of around USD 1.2tn. Among the over 2,000 companies listed in Sydney are 30–40 companies based in Mainland China. According to an article in The Australian Financial Review, a listing on the ASX helps Chinese companies gain prestige and eventually secure contracts.

Advertisement

Since late 2013, 15 Chinese companies have listed in Australia, which prompted ASIC “to step up its surveillance, tighten its reviews of fund-raising documents and monitor listing obligations” in order to avoid fraud and non-compliance.

Ensure that foreign directors are provided with translated copies of important documents—Australian Securities and Investments Commission

For its July 2016 report, ASIC looked at the due diligence practices of 12 IPOs (including those from Chinese companies) and reviewed “various due diligence materials, including the minutes of the due diligence committee, material supporting the preparation and review of the prospectus, expert reports, and verification materials.”

Interestingly, for language service providers, a number of key findings centered around translation, or rather, the lack thereof.

Lack of Chinese Into English Translation

Any company listing in Australia requires Australian directors, most of whom probably do not speak Chinese and, according to ASIC, are appointed only to satisfy residency requirements and have little involvement in the preparation of the prospectus.

ASIC pointed out a lack of Chinese to English translation. “There were instances where Chinese material contracts and agreements were not translated into English,” ASIC said, stating the obvious when pointing out that this “raises questions about how the non-Chinese proficient directors are able to ultimately ensure that the information contained in the prospectus is accurate.”

And the Other Way Around

ASIC also condemns the lack of English into Chinese translation. “There was often no evidence of prospectuses and directors’ questionnaires having been translated into Chinese for non-English speaking directors, even when the issue was mentioned in one of the board minutes.” Moreover, “only one issuer produced board minutes in both Chinese and English.”

Get Translations

ASIC accused the Australian legal advisers of “poor oversight” calling on them to ensure that “foreign directors are provided with translated copies of important documents.” ASIC continues relying on others to overcome the language barrier does not negate a director’s responsibilities before the law.

The report concludes with a recommendation that for emerging market (read: Chinese) issuers “language and cultural barriers must be addressed to ensure that all directors are able to effectively participate in the IPO due diligence process and provide informed consent to the lodgement of the prospectus.”

Armed with this latest report, Australia-based language service providers should now reach out to their brokers, lawyers, and advisors involved in the ASX listing process and point out it is in their (and their clients’) best interest to set up a proper translation process.

SHARE
Marion Marking

By Marion Marking

Slator consultant and corporate communications professional who enjoys exploring Asian cities.

Advertisement

SUBSCRIBE TO THE SLATOR WEEKLY

Language Industry Intelligence
In Your Inbox. Every Friday

SUBSCRIBE

SlatorSweepSlatorPro
ResearchRFP CENTER

PUBLISH

PRESS RELEASEDIRECTORY LISTING
JOB ADEVENT LISTING

Bespoke advisory including speaking, briefings and M&A

SLATOR ADVISORY
Advertisement

Featured Reports

See all
Pro Guide: Translation Pricing and Procurement

Pro Guide: Translation Pricing and Procurement

by Slator

Slator 2020 Language Industry M&A and Funding Report

Slator 2020 Language Industry M&A and Funding Report

by Slator

Slator 2021 Data-for-AI Market Report

Slator 2021 Data-for-AI Market Report

by Slator

Slator 2020 Medtech Translation and Localization Report

Slator 2020 Medtech Translation and Localization Report

by Slator

Press Releases

See all
Protranslate Continues its Substantial Growth in 2021 with its New Enterprise Services

Protranslate Continues its Substantial Growth in 2021 with its New Enterprise Services

by Protranslate

lexiQA Celebrating 5 Years of Continuous Growth

lexiQA Celebrating 5 Years of Continuous Growth

by lexiQA

GET IT Consolidates its Agreement with XTRF to Foster Growth and Ensure Business Excellence

GET IT Consolidates its Agreement with XTRF to Foster Growth and Ensure Business Excellence

by XTRF

Upcoming Events

See All
  1. SlatorCon Remote May 2021

    by Slator

    · May 13 @ 3:00 pm - 8:00 pm

    A rich online conference which brings together our research and network of industry leaders.

    More info $110

Featured Companies

See all
Sunyu Transphere

Sunyu Transphere

Text United

Text United

Memsource

Memsource

Wordbank

Wordbank

Protranslating

Protranslating

SeproTec

SeproTec

Versacom

Versacom

Smartling

Smartling

XTM International

XTM International

Translators without Borders

Translators without Borders

STAR Group

STAR Group

memoQ Translation Technologies

memoQ Translation Technologies

Advertisement

Popular articles

The Slator 2021 Language Service Provider Index

The Slator 2021 Language Service Provider Index

by Slator

Google Translate Not Ready for Use in Medical Emergencies But Improving Fast — Study

Google Translate Not Ready for Use in Medical Emergencies But Improving Fast — Study

by Seyma Albarino

Why Netflix Shut Down Its Translation Portal Hermes

Why Netflix Shut Down Its Translation Portal Hermes

by Esther Bond

SlatorPod: The Weekly Language Industry Podcast

connect with us

footer logo

Slator makes business sense of the language services and technology market.

Our Company

  • Support
  • About us
  • Terms & Conditions
  • Privacy Policy

Subscribe to the Slator Weekly

Language Industry Intelligence
In Your Inbox. Every Friday

© 2021 Slator. All rights reserved.

Sign up to the Slator Weekly

Join over 13,800 subscribers and get the latest language industry intelligence every Friday

Your information will never be shared with third parties. No Spam.