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

Enabled share registrars and Bursa Malaysia to collect stamp duty as part of e-DRP offerings

The Inland Revenue Board of Malaysia has authorised seven share registrars and Bursa Malaysia to compound for the payment of duty on dividend reinvestment form. Investors can now subscribe to e-DRP offerings and make online payments for stamp duty without the need to physically purchase revenue stamps.

List of share registrars providing electronic corporate exercise services to listed issuers as part of their electronic offerings (as at 24 June 2021):

Boardroom Share Registrars Sdn Bhd
Securities Services (Holdings) Sdn Bhd
Shareworks Sdn Bhd
Tricor Investor & Issuing House Services Sdn Bhd