AMP draft explanatory memorandum

THE Australian Securities and Investments Commission has confirmed that it has received a copy of AMP Limited’s draft explanatory memorandum in relation to the financial group’s planned demerger.

The demerger will take place under the supervision of the Federal Court, which can order the calling of shareholders’ meetings and approve the explanatory statement to accompany notices of meetings.

A draft of the explanatory statement is provided to ASIC to give it the opportunity to examine the proposed demerger and the explanatory statement before the court hearing.

If the court orders the calling of a meeting and approves the explanatory statement, AMP can then call the meeting and distribute the explanatory statement to shareholders.

At that point the explanatory statement becomes a public document and shareholders will have an opportunity to inform themselves of the proposed demerger and vote on it at the meeting.

ASIC deputy chairman Jeffrey Lucy said AMP shareholders would face a crucial decision about the future of the company.

"AMP has a large number of retail shareholders so it is vital the company complies with its obligation to provide shareholders with all the information they need to make a decision," he said.