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Bursa Malaysia Berhad (“Bursa Malaysia” or “the Exchange”) today implemented its Green Lane Policy (“GLP”) incentive to the top 30 listed companies based on their good standard of corporate governance conduct and disclosure practices.
The GLP grants certain privileges to these listed companies including faster issuance of circulars to shareholders. The GLP is aimed at recognising and rewarding these companies by facilitating a more efficient time-to-market for their corporate proposals.
Under the GLP, the Exchange will no-longer pre-vet circulars issued by these listed companies except for those involving more complex proposals such as major disposal or privatisation, related party transactions and transactions which involve mineral, oil and gas assets (“Complex Circulars”). This means that these listed companies may issue such circulars to their shareholders as soon as they are ready without having to wait for the Exchange to review the same. Further, the Exchange will fast-track the processing of Complex Circulars (which are still required to be reviewed by the Exchange) submitted by these listed companies.
Under the existing framework, irrespective of a listed company’s risk profile or the complexity of a circular, all circulars to shareholders (excluding “exempt circulars” as defined in Practice Note 18 of the Bursa Malaysia Securities Listing Requirements (“LR”) and those which are stipulated under Paragraph 9.30(2) of the LR) must not be issued until the Exchange has confirmed in writing that it has no further comments on the document.
For the initial phase of the GLP, the Exchange has selected and identified the eligible listed companies from the constituents of the FBMKLCI, after considering, among others, the corporate governance related conduct of the listed companies and their board of directors. The list of eligible listed companies will be reviewed from time to time to ensure their continued eligibility to be on the list.
Moving forward, Bursa Malaysia will undertake a post-implementation review of the effectiveness of the GLP. The Exchange may expand the eligibility criteria to allow a broader pool of listed companies, with the necessary measures and controls to ensure that the Exchange continues to be facilitative of listed companies’ needs without compromising the regulatory objectives.
