Part VIII Conflicts of Interest
A listing applicant should resolve or mitigate conflict situations prior to listing. The Exchange may accept a proposal (submitted through the sponsor) to resolve or mitigate conflicts of interest within a reasonable period after listing. Conflicts of interest include situations in which interested persons (as defined in Rule 904(4)):(1) Carry on business transactions with the listing applicant or provide services to or receive services from the listing applicant or its group;(2) Lend to or borrow from the listing applicant or its group;(3) Lease property to or from the listing applicant or its group; or(4) Have an interest in businesses that are competitors, suppliers or customers of the listing applicant or its group.
In reviewing compliance with the Exchange's policy on conflicts of interest, the sponsor should take into account:(1) The parties involved in the conflict situation and their relationship to the listing applicant;(2) The significance of the conflict in relation to the size and operations of the listing applicant and in relation to its potential influence on the interested person;(3) Whether the parties who are involved in the conflict derive any special advantage from it; and(4) Whether the conflict can be terminated, and if so, how soon and on what basis; or, if the conflict cannot be promptly terminated, whether:(a) the arrangement is necessary and beneficial to the operations of the listing applicant;(b) the terms of the arrangement are the same or better than those that can be obtained from third parties;(c) the arrangement will be reviewed at regular intervals and approved by independent directors or shareholders;(d) the listing applicant has or will have adequate internal procedures to ensure that the terms of the arrangement are fair and reasonable; and(e) there is, or has been, adequate disclosure of the conflict, the parties to it, and the measures taken in respect of it in the offer document.