Our Shareholders / Investors

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Financial Reporting

Magna’s credibility depends on the accuracy of our financial reports, and we must follow all applicable laws related to financial reporting. We must also be completely accurate in our financial entries.

Our financial controls are designed to ensure the accuracy and timeliness of our reports. We will not tolerate anyone taking any step, or ordering someone else to take any step, to circumvent these controls through false or misleading entries. Doing so is a serious violation of our Code and could also be a criminal offense.

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Q

I work in accounting and recently received a number of large supplier invoices. My boss asked that I record them in the next quarter. She said that doing so would improve our financial results and help our share price. Should I follow her instructions?

A

No. Inaccurate dating or delayed reporting of expenses would lead to overstated earnings this quarter and could affect our financial results. Failure to accurately record all financial information, even if it is done with the intention of helping Magna, is a violation of this Code and generally accepted accounting principles. If we are asked to do this, we should refuse. If we don’t feel comfortable or continue to be pressured, we must immediately report the situation to a financial officer at group or corporate office, Legal, or Compliance. We can also report the issue using the Magna Hotline.

Improper Securities Trading

We may sometimes gain access to confidential information about Magna, our suppliers, competitors, customers or business partners through their work. This inside information, if we use it for investment purposes, could give us an unfair advantage over other investors. Buying or selling securities, like stocks and bonds, based on inside information is illegal and the penalties can be severe. Therefore, if we have inside information about Magna or another company, we are prohibited from making investments in that company until that information becomes public and investors have had a chance to evaluate it.

We are also not permitted to share inside information with co-workers or people outside Magna if they are not authorized to receive it. This prohibition extends to sharing inside information with relatives or friends.

There are even more demanding requirements for our directors and officers and other designated individuals listed in the Insider Trading and Blackout Policy. These individuals are prohibited from buying or selling Magna securities during certain time periods.

Our Insider Trading and Blackout Policy provides guidance on how to avoid insider trading and improper disclosure.

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Q

Based on internal reports, I know that our sales have increased significantly and that our profit this quarter will be higher than anticipated by industry analysts. Can I tell my sister to buy Magna stock before we publicly announce our quarterly earnings?

A

No. Using inside information for the benefit of ourselves or others, including our family and friends, is contrary to our Code and illegal.

Public Disclosures

As a public company, we have a responsibility to provide full, accurate and timely information in our public documents. We take that responsibility very seriously and strive to follow all applicable laws related to disclosure of our business, operations, and financial conditions. To comply with these complex legal requirements, we have established a Corporate Disclosure Committee consisting of senior corporate management.

Any employee authorized to speak to the media or shareholders, or to make public disclosures of any kind, must comply with applicable securities laws and our Policy on Corporate Disclosure.

More details can be found in our Policy on Corporate Disclosure.

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