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Bursa Malaysia Securities Berhad (“Bursa Malaysia”) today announced various enhancements to the Main Market and ACE Market Listing Requirements (collectively “Listing Requirements”) aimed at promoting greater business efficacy, while improving corporate governance practices and disclosures. The amendments are pursuant to the implementation of the Companies Act 2016 (CA 2016) and the launch of the Malaysian Code on Corporate Governance (MCCG) this year.
Bursa Malaysia also enhanced post listing obligations for mineral, oil and gas (MOG) listed issuers and special purpose acquisition companies (SPAC). These new requirements seek to enhance the quality of disclosures and promote greater transparency of their activities, in order to better safeguard investors’ interests.
Key highlights of the various amendments to the Listing Requirements are as follows:
i. Amendments arising from implementation of CA 2016 that include:
- providing more flexibility in the bonus issue framework by allowing bonus issue to be undertaken with or without increasing the issued share capital, subject to a pricing condition. Listed issuers can submit a straightforward bonus issue application to Bursa Malaysia without engaging a Principal Adviser;
- enhancing and simplifying the share buy-back framework by expanding the usage of treasury shares with appropriate safeguards;
- promoting efficient securities holders’ engagement by allowing electronic means of communication; and
- simplifying the prescribed contents of a listed issuer’s constitution.
ii. Amendments relating to corporate governance (CG) requirements that include:
- improving the quality of CG disclosures through the CG Overview Statement and CG Report;
- promoting transparency over directors’ remuneration by requiring disclosure on a named basis; and
- enhancing the Audit Committee’s oversight over the internal audit function.
iii. Amendments to the post-listing obligations of MOG listed issuers and SPACs that include:
- promoting transparency through immediate announcements of specific material information of MOG listed issuers and enhancements to periodic reports of both MOG listed issuers and SPACs; and
- strengthening the governance framework by requiring listed issuers with substantial MOG activities and SPACs intending to acquire MOG assets as part of their qualifying acquisition to have at least one independent director and appoint an external auditor with relevant MOG exploration or extraction experience or expertise.
The amendments to the Listing Requirements is a testimony to Bursa Malaysia’s commitment to promote a balanced and proportionate rule framework, having considered all the key stakeholders’ needs and inputs. This fits in well with Bursa Malaysia’s continuous efforts to position itself as a conducive listing and capital raising destination.
Most of the amendments will be effective from 2 January 2018 onwards with some enhancements such as the corporate governance requirements coming into effect on 31 December 2017. In certain areas, listed issuers are accorded with a longer grace period to comply with the amended Listing Requirements.
Further details of the various effective dates and the amended Listing Requirements are available at Bursa Malaysia’s website at: http://www.bursamalaysia.com/market/regulation/rules/listing-requirements/main-market/listing-requirements.
