Bursa Malaysia Amends Listing Rules to Protect Shareholders

Disclosures requirements applicable to new issues are enhanced, director independence is strengthened, and transparency on loans linked to controlling shareholders is improved.

Bursa Malaysia has amended the Main Market and ACE Market Listing Requirements to enhance disclosures when new securities are being issued.

The new requirements are based on an August 2019 consultation which proposed rule changes to address gaps for greater shareholder protection and confidence.

The amendments will enhance the presentation and contents of announcements and circulars issued for new issues of securities by clustering information for better flow and requiring value-add disclosures.

The changes additionally enhance transparency on material loan covenants, conditions or restrictions linked to controlling shareholders.

The amendments took effect from Thursday (13 August).

Other amendments will also impose a 50 percent limit on the number of shares that can undergo conversion of convertible equity securities, to mitigate the dilution effect to shareholders

The amendments will also strengthen director independence by extending the cooling-off period from two to three years for officers, advisers, or transacting parties of a listed issuer or its related entities.

Non-independent non-executive directors will also be subject to the revised cooling-off period.

These amendments will take effect on 1 October 2020.

The new listing requirements can be found here: Main MarketACE Market.

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