The recent reprimand served on Toyo Ventures Holdings Berhad by Bursa Malaysia Securities speaks loud and clear that PLCs must be mindful and prudent when declaring dividends.
They must be careful to ensure that they are able to facilitate the dividend payout exercise and there can be no retraction or withdrawal once a dividend is declared.
It may be difficult for some to envisage a major market crash in the near future, as it was not long ago since the Covid-19 pandemic triggered a free fall in global equities in early 2020.
But of late, several well-known “Cassandras” from the likes of Michael Burry, Nassim Taleb and Nouriel Roubini have rung the alarm of a devastating crash. Should their predictions prove accurate, an impending crash may be lurking around the corner and could take investors by surprise.