The Long-Term Stock Exchange, Inc. (LTSE) has proposed a change to its rules, focusing on LTSE Rule 14.501, to improve how it enforces compliance with LTSE Rule 14.425, which requires listed companies to form certain long-term policies and review them annually. These policies include stakeholder and strategy guidelines that must align with given principles. The exchange suggests if a company fails to comply, it can submit a compliance plan for review, similar to current policies on corporate governance issues, giving them a chance to meet the standards without immediate delisting. The change aims to support long-term value creation while ensuring that all companies are treated fairly under these rules.
Simple Explanation
The Long-Term Stock Exchange wants to change a rule to make sure companies they list have plans for the future that they check every year. If a company doesn't follow the rule, they can make a plan to fix it so they don't get kicked out right away.