Executive Chairman of the KLSE, Dato' Mohd Azlan Hashim, said that the amendments will result in cost savings to the listed companies.
"The amendments are aimed at facilitating listed companies in undertaking share buy-backs. Where previously a listed company is required to issue a shareholders' circular for the purpose of renewing an existing shareholder mandate, listed companies now have the option to issue a 'Share Buy-back Statement' accompanying the notice of general meeting. The Share Buy-back statement is a concise document containing minimum contents of most relevant information.
"Listed companies who opt for the Share Buy-back statement will be able to save time and administrative costs," Mohd Azlan said.
The decision to issue a circular or a Share Buy-back Statement is at the discretion of the listed company. The flexibility allowed refers to the manner of providing information on the share buy-back to the shareholders and does not in any way detract from the need to obtain shareholder authorisation before the company undertakes a purchase of its own shares.
Other flexibilities advanced from the amendments include the choice for a listed company to appoint up to two stockbroking companies for the purpose of purchasing its own shares or reselling treasury shares on the exchange.
The amendments are effective with effect from 1 November 2003.
Mohd Azlan said that the amendments pertaining to share buy-backs are part of the continuing efforts of the Exchange to enhance expediency and efficiency in the market.
"Share buy-backs help to stabilise the prices of securities. This improves efficiency of the market, and is good for all participants, including investors."
Further information on the amendments can be obtained from the KLSE website at www.klse.com.my.