Provision of Financial Assistance by PLC
*Scenario* A public company listed on Bursa Malaysia (seller) disposes some of its shares in its wholly owned subsidiary which is not listed (target company). After completion of the disposal, the target company will become an associated company of the seller. There is an existing guarantee given by the seller as security …
Investment gurus, beware
There seems to be a proliferation of activities involving provision of investment advice which has prompted the SC to issue the Guidance Note on Provision of Investment Advice last year. A person must be licensed by the SC for providing investment advice under the CMSA if he: • is carrying …
Provision of guarantee to associated company etc after disposal
When a PLC disposes of part of its shares in a subsidiary (target company) which results in the target company becoming an associated company or joint arrangement of the PLC, the provision on financial assistance under the Listing Requirements should be taken into consideration. If the PLC or its other …
Drafting of notice of meeting for issuance of shares to directors etc
Notice of meeting for issuance of shares by a company listed on the Main Market or ACE Market or its subsidiaries to a director, major shareholder, chief executive of the listed company or its holding company or persons connected with them must contain the details required under the Listing Requirements. …
IPO: Consent for disclosure of material contracts
The Prospectus Guidelines have been amended recently with the amendments to take effect from 1 January 2021. The existing paragraph 1.08(g) of Part III: Procedures for Registration has been amended to clarify that certified true copies of all material contracts, regardless whether the contracts are in the corporation’s ordinary course …
Related party transaction: What is “interest”?
For those who have the experience of decoding the definition of “related party transaction” in the Listing Requirements, the term may seem like pieces of jigsaw puzzle to be put together. Under the Main Market Listing Requirements (“MMLR”) and ACE Market Listing Requirements (“AMLR”), “related party transaction” means a transaction …
Of due diligence and verification meeting
One of the lines which a corporate lawyer probably say most often at the start of a verification meeting for a corporate exercise is to remind the clients and the rest of the due diligence working group that all the information in the prospectus or circular for the corporate exercise …
The Guidelines on Conduct of Directors of Listed Corporations and Their Subsidiaries
The Securities Commission of Malaysia (“SC“) has issued The Guidelines on Conduct of Directors of Listed Corporations and Their Subsidiaries pursuant to the the Securities Commission Act 1993. The guidelines is a restatement of the standards that are expected of directors as fiduciaries. The effect of the guidelines is that …
Proposed changes to the ACE Market IPO process
Bursa Malaysia Securities Berhad (“Exchange”) has issued Consultation Paper No. 2/2021 on 3 August 2021 to seek public feedback on the proposed changes to the ACE Market IPO process. The diagram above, as extracted from the Consultation Paper, shows the current ACE Market IPO process and the proposed changes to …
Related party transaction: What is “interest”?
For those who have the experience of trying to decode the definition of “related party transaction” in the Listing Requirements, the term may seem like pieces of jigsaw puzzle to be put together. Under the Main Market Listing Requirements (“MMLR”) and ACE Market Listing Requirements (“AMLR”), “related party transaction” means a transaction …