Glass Lewis has submitted a response to the consultation paper from the Bursa Malaysia on proposed changes to the Main Market and ACE Market Listing Requirements. The changes that Glass Lewis commented on relate to:
- A proposed 50% cap on the issuance of convertible securities;
- Enhancements to issuer disclosure relating to material loan covenants linked to controlling shareholders;
- Enhanced disclosure and transparency pertaining to corporate rescue mechanisms; and
- Increases on the cooling-off periods for independent directors along with subject non-independent directors to a cooling-off period.
As discussed in our response, Glass Lewis generally supports the proposed amendments to the Listing Regulations. Notably, the cap on the issuance of convertible securities could limit dilution to shareholders, while Glass Lewis proposed further shareholder input and voting on the issuance of convertible securities. Further, the increased transparency of disclosure relating to material loan covenants and rescue mechanisms is a step in the right direction, which other markets have also begun to practice. Lastly, the proposed changes to cooling-off periods would see an increase from two to three-years, while non-independent non-executive directors would also be subject to a cooling-off period following a director’s service as an executive director.
You can download our submission to the consultation below. For more information, contact info@glasslewis.com