Article 7Anyunitsandindividuals have the obligation to keep the informationofmaterialassetsreorganizationknownto them confidentialbefore the disclosure according to the law.
Ironically, an agency created to compel disclosure of materialinformation to investors has morphed into the single most formidable opponent to disclosure of that information to investors.
In the United States, management and directors are liable only if they acted intentionally or with a degree of recklessness that approaches intentionality when either misstating or omitting materialinformation for a disclosure other than in public offerings.
This rule is designed to ensure that individual investors have equal access to information as large institutional investors, by prohibiting selective disclosure of materialinformation.