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26.01.2018

VOICE OF MSWG

Both Hong Kong and Singapore Stock Exchange are gearing up to allow Dual-Class Shares Listing as it would provide greater flexibility for companies to raise capital and meet different investor preferences. Such listings allow an exchange to be competitive and attractive to successful companies with founder-managers. Should Malaysia enjoy the benefits of allowing such listing?

Dual-Class Shares run contrary to the equality of one-share-one-vote. It would mean that the management team are given “full” control of the running of the Company, including appointments to the Board of Directors. A board appointed by management will be beholden to the management instead of the interest of ALL shareholders. This has been cited as one of the reasons for disallowing such listings.

On the pragmatic approach, in corporate governance, sometimes one size does not fit all. Dual-class structures clearly have benefits besides the drawbacks.

19 January 2018

MSWG’S QUICK TAKE ON-ONGOING CORPORATE DEVELOPMENTS

HOVID BERHAD (“HOVID”)

The Board of Directors of Hovid (“Board”) announced that as at 10 January 2018, the joint offerors collectively hold 75.64% of the total issued ordinary share capital of the company. Accordingly, Hovid does not comply with the required public shareholding spread pursuant to Section 8.02(1) of the Listing Requirements whereby a listed issuer must ensure that at least 25% of its total listed shares are in the hands of public shareholders (“Public Shareholding Spread Requirements”).

The joint offerors have stated that they do not intend to maintain the listing status of Hovid and may procure Hovid to take the requisite steps to withdraw its listing status from the Official List in accordance with Paragraph 16 of the Listing Requirements. As at the date of the announcement, there are no plans to rectify the shortfall in the Public Shareholding Spread Requirements.

[Source: Hovid’s announcement on Bursa Malaysia’s website on 11 January 2018]

13 January 2018 VOICE OF MSWG Happy New Year everyone! Unlike in previous years, 2018 has begun very well for share markets generally, with the upcoming general elections and strong Ringgit viewed as additional favourable catalysts for Bursa Malaysia. During this market exuberance, it is good to remind ourselves on the importance of responsible corporate behaviour. Judging from the developments at MUI Properties (management changes for good CG, succession planning), AirAsia (CEO and deputy CEO relinquishing directorships to enhance CG) and Berjaya Food Bhd (executive chairman resigning from post to comply with best practices under the CG code), it is clear that there is some momentum among listed companies to better comply with the freshly revised Malaysian Code on Corporate Governance (MCGG) 2017. For the sixth-straight year, we have shown CG improvements in the results of our MSWG-ASEAN Corporate Governance Recognition 2017, despite the more stringent assessments under the revised scorecard