Bursa Malaysia Berhad’s Chief Legal Officer, Selvarany Rasiah said the amendments were made as part of Bursa Securities’ continuous efforts to enhance the timeliness and quality of disclosures by listed companies to aid informed investment.
“The Disclosure Requirements were reviewed with the main objective of enhancing disclosures whilst being mindful of the regulatory costs to listed companies. With the key changes, the timeliness and quality of disclosures is further enhanced. This in turn will boost the confidence level amongst investors and help them make better informed investment decisions.”
“As the Disclosure Requirements have been enhanced, the requirement to issue an information circular for non-related party transactions which trigger a percentage ratio of 15% has been removed. Listed companies will now be required to make the enhanced announcement and despatch a copy of the announcement to shareholders. For the investors, this leads to a timely and enhanced disclosure in announcements and for the listed companies, it results in cost savings,” said Selvarany.
The amendments are also in line with Bursa Securities’ overall aim to enhance the quality of PLCs for the Malaysian market.
The key enhancements include the following:-
- Enhancement of the Disclosure Requirements including requiring disclosure of:-
- Conditionality of the proposal in question with other corporate proposals/exercises which have
yet to be completed;
- Effects of the proposal, specifically the gearing of the listed company/group and in the case
of a disposal, whether it would result in the listed company being deemed to be a cash company or
to have inadequate level of financial condition and/or level of operations and particulars of
liabilities which would be assumed by the purchaser;
- The timeframe for completion of the proposal;
- The existence of conflicts of interests on the part of an adviser/expert, where appointed;
- In relation to new issues of securities, information on provisions for termination and/or
withdrawal of the underwriter(s);
- In relation to a transaction which triggers a percentage ratio of 100%, the usage of financial
information which is up-to-date for preparation of the pro forma financial information i.e. either
the audited accounts for the latest financial year end of the latest interim report which must be
reviewed by auditors;
- Conditionality of the proposal in question with other corporate proposals/exercises which have
yet to be completed;
- In relation to foreign acquisitions, permitting the use of a foreign valuer provided that the appointment of such valuer fulfils the Securities Commission’s requirements under the Securities Commission’s Guidelines on Asset Valuation in relation to the appointment of valuer for valuation of foreign property assets.
The amendments will take effect from 15 November 2006.
The complete text of the amendments is also available for reference along with a set of frequently asked questions and answers on Bursa Malaysia’s website at www.bursamalaysia.com
