CEO, CFO, COO are also “directors”
The definition of a “director” is not limited to a person who is formally appointed as a director. Whether a person is a director depends more on the person’s functions than title. The definition of a “director” under section 2 of the Companies Act 2016 is not exhaustive. It includes …
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 …
Who is fit to be a director?
The Companies Commission of Malaysia has brought charges against directors of companies in separate cases for acting as directors while being undischarged bankrupts.* The legislature does not prescribe the qualities and experience a person must possess before he is fit for appointment. However, the legislature does prescribe the categories of …
Consider this before IPO
Prior to a company undertaking an IPO, its stakeholders should understand the implication of being a public listed company (“PLC”) and consider whether being listed is right for the company. Consider the following: • Business owners would no longer have total control of a company once it is listed. Certain …
Duty of nominee director to act in the best interest of company prevails
A director may be appointed to represent the interests of a person or a particular group such as employees, creditors or debenture holders. When a shareholder invests in a company, the shareholder and the company may agree that the shareholder has the right to appoint a director to represent the …
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 …
Non-executive director’s appointment letter
The ICSA published a sample non-executive director’s appointment letter (link in the comment section). The sample letter aims to provide an initial checklist of the elements a company intends to cover in its appointment letter and is not intended to be a prescriptive template. Although the sample letter is drafted …
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. …
Bursa Reader Friendly Guide
For persons who draft announcements and circulars Bursa has issued the Reader Friendly Guide in 2019 to provide guidance to persons who prepare announcements and circulars to shareholders (collectively, “Disclosure Documents”) and assist them to ensure that the disclosures are clear, simple and succinct. The Guide recommends 3 principles for …
IPO: Property related issues
The Prospectus Guidelines require material properties owned and rented by a company seeking for listing and its subsidiaries to be set out in prospectus. Further, the prospectus must set out the relevant laws, rules or requirements governing the group’s business and environmental issue which may materially affect the group’s business …