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Bursa Malaysia Berhad (“Bursa Malaysia” or “the Exchange”) has issued various amendments to the Main Market and ACE Market Listing Requirements (collectively the “LR”) today to raise the standards of disclosure and Corporate Governance (“CG”) practices.
Arising from changes to the international standards of auditing relating to key audit matters and going concern (“Standards”), the Exchange has also introduced enhancements to promote greater transparency of significant matters highlighted in the auditor’s report.
The amendments follow a review and public consultation conducted in October 2015 with the primary objectives of promoting greater transparency and maintaining the highest standards of market integrity and investor protection. In finalising the amendments, the Exchange has considered the feedback or comments received on the Consultation Paper, and reviewed the proposals accordingly.
According to Bursa Malaysia Chief Executive Officer, Datuk Seri Tajuddin Atan: “The capital market is a dynamic environment where the rules are constantly updated to ensure their continued relevance and effectiveness. In this regard, the Exchange has found that enhanced disclosures and CG requirements are necessary to meet the growing needs of increasingly sophisticated investors.”
The key amendments to the LR include:
- improving the quality of disclosures in annual reports by prescribing disclosure of non-financial information such as the management discussion and analysis (“MD&A”) in order to aid investors in making informed investment decisions, and at the same time, reducing the burden of regulatory compliance through the removal of information considered to be redundant from the annual report;
- enhancing the integrity of financial statements and transparency on significant matters highlighted in the auditor’s report by requiring immediate and periodic disclosures of, among others, key audit matters and matters related to going concern, and strengthening the role of the audit committee in reviewing financial statements;
- strengthening the CG practices of listed issuers by mandating poll voting for all resolutions set out in the notice of any general meeting or in any notice of resolution which may properly be moved and is intended to be moved at any general meeting
- improving transparency and shareholder engagement by requiring posting of a summary of key matters discussed at annual general meetings, on the listed issuer’s website; and
- streamlining the relevant LR requirements consequential to changes in the relevant laws and guidelines issued by the Securities Commission Malaysia.
The amendments will be implemented on a staggered basis, commencing from 30 April 2016, to ensure a sufficient grace period is accorded to listed issuers to understand and comply with the amendments.
For more information on the LR amendments and their respective effective dates, please visit Bursa Malaysia’s website at www.bursamalaysia.com
