Corporate Actions - BRIDGe recommendations | Securities Commission Malaysia

Corporate Actions

#ExerciseRightsOnline

The problem statement

Notification and subscription of corporate actions like Dividend Reinvestment Plan (DRP), general meetings, general offers, share conversion etc still largely manual
E-rights subscription remains low
Online trade blocks placed on securities undergoing share consolidation exercises

The objective

To enable digitisation of corporate actions, ranging from notification to subscription and/or payment
To enable investors to trade seamlessly during a share consolidation exercise

Outcomes

Enabling online investors to continue trading shares undergoing share consolidation exercise

Issuance of directive and Practice Note by SC to all CMSL holders requiring them to cease trading blocks on securities undergoing share consolidation exercises to facilitate seamless online trading by investors.

Facilitating for fully virtual and hybrid general meetings

The SC issued a Guidance and FAQs on the Conduct of General Meetings for Listed Issuers; to facilitate the conduct of fully virtual general meetings and hybrid general meetings.

Facilitating for digitisation of General Offers

The SC introduced flexibilities in complying with takeover requirements

Listed issues will have to offer shareholders an option to convert shares electronically, electronically subscribe to rights issues and electronically participate in dividend reinvestment schemes

Amendments to Bursa’s Main and ACE Market Listing Requirements to provide securities holders with an option to subscribe for rights shares, exercise convertible securities and participate in a Dividend Reinvestment Scheme electronically

List of platforms used by companies to facilitate virtual and hybrid general meetings (as at 31 July 2020):

Tricor RPV
Lumi AGM
GoToWebinar
Vote2u
Cisco Webex
Securities Services e-Portal
Boardroom Smart Investor Online Portal
Zoom