Legal Definitions - compulsory disclosure

Compulsory disclosure refers to the legal requirement to reveal specific information or documents to another party, a court, or a regulatory body. This obligation is not voluntary; it is mandated by law, court rules, or a specific order, ensuring transparency and fairness in legal or administrative processes.

• Example 1: Divorce Proceedings

  During a divorce case, both spouses are typically required by family law to provide comprehensive financial information to each other and the court. This includes details about their income, assets (like bank accounts, real estate, and investments), and debts. This is a compulsory disclosure because court rules mandate it to ensure a fair and equitable division of marital property and the determination of spousal or child support.

• Example 2: Corporate Financial Reporting

  Publicly traded companies in many countries are legally obligated to submit regular financial reports, such as quarterly and annual statements, to government regulatory agencies like the Securities and Exchange Commission (SEC). These reports detail the company's financial performance, risks, and other material information. This is a compulsory disclosure designed to protect investors by providing them with transparent and consistent access to critical information about the companies they invest in.

• Example 3: Mandated Reporting for Professionals

  A school teacher observes signs of physical abuse on a student. In many jurisdictions, teachers, doctors, social workers, and other professionals who work with children or vulnerable adults are legally required to report any suspected abuse or neglect to child protective services or law enforcement. This is a form of compulsory disclosure, often called "mandated reporting," intended to protect individuals who may be unable to protect themselves.