|Significant Drop in Number of Undercapitalised Listed Companies|
|The Securities Commission (SC) announced today that the number of listed companies that have yet to meet the minimum paid-up capital requirement has dropped significantly from 228 companies in 2001 and 88 companies in 2003 to 28 companies as at 29 June 2004.|
Out of the 28 undercapitalised listed companies currently, 19 are already in various stages of progress while only nine have yet to make any announcements of proposals to meet the minimum capital-size requirement. The status of efforts by these 28 undercapitalised listed companies, representing 3% of the total number of companies listed on Bursa Malaysia, is as follows:-
In view of the progress made by the 19 undercapitalised companies towards fulfilling the minimum capital size of RM60 million (Main Board) and RM40 million (Second Board) respectively, no immediate action will be taken against them.
As for the nine companies that have yet to announce any proposal to increase their capital size, their Boards of Directors will be required to make representations to the SC on the reasons for the delay and commit to concrete plans towards meeting the requirement.
The SC is closely monitoring all the 28 undercapitalised companies. Appropriate measures will be taken against these companies, after due process, if the progress shown in meeting the capital-size requirement is unsatisfactory.