Profile
The Minority Shareholder Watchdog Group (MSWG) was set up as a government initiative to be a part of a broader capital market framework to protect the interest of minority shareholders through shareholder activism. It is one avenue of market discipline to encourage good governance amongst public listed companies with the objective of raising shareholder value over time.
It has evolved to be an independent research organization on corporate governance matters advises on minority shareholders on voting in AGM/EGMs. MSWG provides a platform for collective voice to both retail and institutional minority shareholders and it advises on voting at general meetings of public listed companies. This has been the first step towards encouraging shareholder activism without recourse to courts (ref: Report on Corporate Governance, March 1999).
MSWG has a Charter under its Memorandum and Articles of Association (M & A) which basically spells out its objectives as follows:
MSWG is currently funded up to 75 per cent by the Capital Market Development Fund (CMDF) whilst the balance of 25 per cent is through internally generated funds from the activities of its products and services.
It has evolved to be an independent research organization on corporate governance matters advises on minority shareholders on voting in AGM/EGMs. MSWG provides a platform for collective voice to both retail and institutional minority shareholders and it advises on voting at general meetings of public listed companies. This has been the first step towards encouraging shareholder activism without recourse to courts (ref: Report on Corporate Governance, March 1999).
MSWG has a Charter under its Memorandum and Articles of Association (M & A) which basically spells out its objectives as follows:
- To become the Forum on minority shareholders’ experiences in the context of the Malaysian Code on Corporate Governance and the Securities Commission’s Disclosure-Based Regulation and the Capital Market Masterplan 2001-2010;
- To become the Think-Tank and Resource Centre for minority interest and corporate governance matters in Malaysia;
- To develop and disseminate the educational aspects of corporate governance;
- To become the platform to initiate collective shareholder activism on questionable practices by management of public listed companies;
- To influence the decision making process in public listed companies as the leader for minority shareholders’ legitimate rights and interests;
- To monitor for breaches and non-compliance in corporate governance practices by public listed companies; and
- To initiate where appropriate, reports to regulatory authorities and transforming MSWG into an effective deterrent of such events or activities that can be against the interest of the minority shareholders.
MSWG is currently funded up to 75 per cent by the Capital Market Development Fund (CMDF) whilst the balance of 25 per cent is through internally generated funds from the activities of its products and services.
