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Bursa Malaysia invites public feedback on the proposed amendments to the Listing Requirements for Disclosure, Corporate Governance and Mineral, or Oil and Gas listed issuers
Bursa Malaysia Securities Berhad (“Bursa Malaysia” or “the Exchange”) today invited public feedback on the proposed amendments to the Listing Requirements aimed to boost its disclosure and corporate governance framework, as well as the post listing obligations for mineral, oil and gas listed issuers.
The amendments aim to promote greater transparency, maintain market integrity and reinforce investor protection.
DISCLOSURE AND CORPORATE GOVERNANCE REQUIREMENTS
Bursa Malaysia proposes to further improve the quality of disclosures in the market place by prescribing additional non-financial information such as disclosure of management discussion and analysis in annual reports which is useful and essential to investors to aid them in making informed investment decisions.
Bursa Malaysia also took into consideration the developments in the international standards of auditing relating to key audit matters and going concern, and the impact arising from such standards, which necessitate greater disclosure and transparency on the audits performed by listed issuers’ external auditors.
Additionally, the Exchange noted the need to improve shareholder engagement and participation to inculcate better corporate governance practice and to improve listed issuers’ engagement with their shareholders.
Therefore, the scope of the review includes the following key areas:
i. enhancing the contents of annual reports by prescribing non-financial information such as disclosure of management discussion and analysis, and removing information which has been previously disclosed via immediate announcements or the quarterly report, where appropriate;
ii. enhancing the relevant provisions of the Listing Requirements arising from the international standards of auditing on key audit matters and going concern by requiring immediate and periodic disclosures of matters that require significant auditor’s attention and matters relating to going concern, together with steps taken to address them, as well as strengthening the role of audit committee when reviewing the financial statements; and
iii. improving shareholder engagement and strengthening corporate governance practices of listed issuers by requiring poll voting on all resolutions at general meetings and mandating posting of minutes of annual general meetings on the web-site.
The proposed enhancements above are benchmarked and on par with international standards and practices. Bursa Malaysia hopes that through this review, the Exchange will remain as an attractive investment destination through enhanced transparency in the market place, good corporate governance practices amongst the listed issuers as well as adequate safeguards for investor protection.
POST-LISTING DISCLOSURE OBLIGATIONS FOR MINERAL, OIL AND GAS LISTED ISSUERS
Bursa Malaysia proposes to create a robust disclosure framework specifically tailored for listed issuers involved in mineral, oil and gas exploration or extraction activities (“MOG activities”) post listing (“Proposed MOG Amendments”).
The Proposed MOG Amendments cover the following key areas:
i. the ambit of listed issuers which are considered as mineral, oil and gas (“MOG”) listed issuers;
ii. the post-listing disclosure requirements for MOG listed issuers;
iii. specific requirements relating to acquisition or disposal of MOG assets or a corporation whose core business is in MOG activities;
iv. the qualifications and experience required of technical experts who are involved in the assessment of MOG resources and reserves and the valuation of MOG assets; and
v. the standards for reporting MOG resources and reserves.
The Proposed MOG Amendments are aimed at improving the investability of MOG listed issuers and strengthening investor protection through continuous disclosure of material, relevant and reliable information post listing. At the same time, the Proposed MOG Amendments also seek to promote quality disclosure in the marketplace by requiring disclosures to be supported by technical expert reports and made in accordance with acceptable international reporting standards, where appropriate.
The Proposed MOG Amendments should be read in conjunction with the consultation paper issued on 15 October 2015 by the Securities Commission on the proposed requirements for the admission of companies involved in MOG activities to the Main Market of Bursa Malaysia.
The public consultation paper issued by Bursa Malaysia today seeks comments and feedback on the proposed amendments to the Listing Requirements from all interested stakeholders including listed issuers, the investing community, regulators, industry associations and the general public.
The public consultation paper and the proposed amendments to the Listing Requirements are available on the Bursa Malaysia website at here. Feedback on the proposals may be given by completing and submitting the Table of Comments via email to norlailamohamad@bursamalaysia.com by 13 November 2015.
