Announcements and publicity
Announcements and publicity

The following Commercial guidance note provides comprehensive and up to date legal information covering:

  • Announcements and publicity
  • General
  • Reasons for making an announcement
  • Consequences of making public announcements
  • Relationship of announcements clause to other provisions in an agreement controlling release of information

General

During the lifetime of an agreement (and sometimes afterwards) one or more of the parties may wish to inform third parties about certain matters regarding the existence of the agreement, its subject matter, or events arising from the operation of the agreement. The type of information envisaged is that which is contained in public announcements or press releases made by one or more the parties, eg to inform investors, potential investors, the press, potential customers or regulatory authorities. This type of announcement is usually distinct from information which results from the operation of the agreement, eg in a consultancy agreement, the consultant may make regular reports of the work it carries out and provide the information to its client (or sometimes third parties).

However, the parties will not normally wish to allow each other to freely release information to third parties and will insert a clause in the agreement which forbids all or some of the parties from releasing certain (or all) information. The general aim of an announcements clause is to control the form of public announcement, so that at a minimum no announcements are made about the subject matter of the agreement without the prior agreement of all the parties.

Other common provisions of an announcements and publicity clause may include:

  1. permitted exceptions to the general prohibition on