Bursa amends listing requirements in line with Companies Act 2016 and corporate governance code

PETALING JAYA: Bursa Malaysia Securities Bhd has enhanced a few listing requirements in line with the Companies Act 2016 and Malaysian Code of Corporate Governance (MCCG), in a bid to promote transparency, business efficiency and quality of disclosures as well as to safeguard investors interest.

“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,” the stock market regulator said in a statement.

Among the amendments made in relation to the Companies Act 2016 —will allow listees to undertake a bonus issue without increasing the issued share capital subject to a pricing condition, and submit a straightforward bonus issue application to Bursa Malaysia without engaging a Principal Adviser.

Meanwhile in terms of corporate governance, the new requirement stipulates that directors remuneration should be disclosed on a named basis, while Audit Committee’s oversight is enhanced over the internal audit function and quality of corporate governance disclosures through the Corporate Governance Overview Statement and Report.

As for the post listing obligations for MOG listees and Special Purpose Acquisition Companies(SPAC), immediate announcements of specific material information and enhancements to periodic reports are required.

On top of that the governance framework for listees with substantial MOG activities and SPACs intending to acquire MOG assets as part of their qualifying acquisition--will be have to least have one independent director and appoint an external auditor with relevant MOG exploration or extraction experience or expertise.

The amendments will come into effect on Jan 2, 2018 onwards with some enhancements such as the corporate governance requirements coming into effect on Dec 31, 2017. Issuers will also be accorded with a longer grace period to comply with the amended listing requirements.