Message From the CEO
.jpg)
11 May 2012
I should like to highlight an observation made in The Edge's weekly edition, which raised the issue of Ho Hup and its redevelopment of its 60 acres in Bukit Jalil. This land is the subject of an ongoing legal tussle and the Court of Appeal’s apparent ruling that that shareholder approvals are not needed for transactions involving the subsidiaries of a listed corporation.
Obviously, we would oppose such a ruling. As The Edge points out, should the ruling be upheld by the Federal Court, it would mean that subsidiaries can pursue corporate transactions - including the disposal of core assets that generate the bulk of the parent company's earnings - independently of their parent companies. This clearly contravenes Bursa Malaysia’s listing rules, which require the Board of Directors to seek shareholder approval on major corporate transactions. This is a rule which is meant to uphold Corporate Governance best practices.
We also highlight the much-awaited move by Hong Kong’s Securities and Futures Commission to launch a two-month consultation on proposals to enhance sponsor regulations. Hong Kong, which continues to be the world’s top market for IPOs, has come under fire regarding the quality of some companies that have sought a listing in that market.
Given the questionable background of some of the listed companies in the country that have surfaced in the last few years, we also think it is about time that Malaysia followed suit. We need to re-look at our listing rules and examine the qualitative elements that come into play when allowing companies to raise capital from the public.
Separately, an article in Finance Asia points out a slew of big-ticket IPOs set to hit Asian stock markets this year, which is expected to keep equities markets vibrant. Graff Diamonds (which targets the ultra-rich and hopes to raise about $1 billion), Chinalco ($1 billion), China Nonferrous Mining ($400 million) and Yongda Auto (up to $500 million) are all targeting Hong Kong.
One last note on IPOs: re-listings seem to be on the up and up. Our views on this are quite clear: re-listings should come with clear and firm guidelines by regulators, since they unfairly prejudice minority shareholders.
Obviously, we would oppose such a ruling. As The Edge points out, should the ruling be upheld by the Federal Court, it would mean that subsidiaries can pursue corporate transactions - including the disposal of core assets that generate the bulk of the parent company's earnings - independently of their parent companies. This clearly contravenes Bursa Malaysia’s listing rules, which require the Board of Directors to seek shareholder approval on major corporate transactions. This is a rule which is meant to uphold Corporate Governance best practices.
We also highlight the much-awaited move by Hong Kong’s Securities and Futures Commission to launch a two-month consultation on proposals to enhance sponsor regulations. Hong Kong, which continues to be the world’s top market for IPOs, has come under fire regarding the quality of some companies that have sought a listing in that market.
Given the questionable background of some of the listed companies in the country that have surfaced in the last few years, we also think it is about time that Malaysia followed suit. We need to re-look at our listing rules and examine the qualitative elements that come into play when allowing companies to raise capital from the public.
Separately, an article in Finance Asia points out a slew of big-ticket IPOs set to hit Asian stock markets this year, which is expected to keep equities markets vibrant. Graff Diamonds (which targets the ultra-rich and hopes to raise about $1 billion), Chinalco ($1 billion), China Nonferrous Mining ($400 million) and Yongda Auto (up to $500 million) are all targeting Hong Kong.
One last note on IPOs: re-listings seem to be on the up and up. Our views on this are quite clear: re-listings should come with clear and firm guidelines by regulators, since they unfairly prejudice minority shareholders.
Regards...
Rita
Upcoming AGMs / EGMs
| 21 May 2012 | Sino Hua-An International Bhd |
| 22 May 2012 | UNISEM (M) BHD |
| 22 May 2012 | KFC Holdings (M) BHD |
| 22 May 2012 | QSR Brands Bhd |
| 22 May 2012 | Harvest Court Industries Bhd |
| Meetings | |
Highlights
| ||||||||||||
Subscriber Login
Meetings/Events Calendar
MCG Index 2011 Report
 |
| The MCG 2011 Index Report is available for purchase at RM250 per copy. Order your copy now by completing and returning the MCG Index 2011 Order Form. |