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MARKET AND REGULATORY UPDATE

Malaysia Weighs Dual-Class Shares as Exchanges Battle for IPOs

It was reported by Bloomberg that Bursa Malaysia Berhad had in its emailed response to Bloomberg queries stated that it is considering whether to allow companies with dual-class share structures.

According to the report by Bloomberg, the structures give company founders and leaders outsized powers that are seen by investor advocates as undermining the one share, one vote system of corporate governance. Approval by Bursa Malaysia would mean opponents of the structures would face an increasing number of stock exchanges willing to list firms with multiple classes of stock.

[Source: Media release on Bloomberg’s website on 8 August 2017]

04 August 2017

VOICE OF MSWG

Sime Darby’s announcement of its new leadership teams at each of its three individual standalone units, i.e. Sime Darby Berhad, Sime Darby Plantation Berhad and Sime Darby Property Berhad, were positive on a number of fronts.

Firstly, timing.

By informing the market several months before their listings on Bursa at year-end, shareholders will have been given enough time to digest the news while allowing the respective managers to get used to, and to settle into their new roles.

Secondly, certainty.

The appointments remove any doubt as to who exactly will oversee Sime’s Property, Plantations and Group units, with a clear reporting structure installed.