Kuala Lumpur, 2 July 1999

The Securities Commission (SC), as the regulator of the capital market, will not hesitate to take action against any public listed company (PLC), their directors, officials and advisers should there be any evidence of them giving out misleading information to the detriment of investors' interests.

The SC would like to remind directors, officials and advisers of PLCs to exercise good corporate governance in disclosing timely and correct information to the investing public.

The SC has noticed that, with the recovery of the Kuala Lumpur Stock Exchange (KLSE), the tendency for directors, officials and advisers of PLCs to make public announcements and statements on the companies' future prospects and corporate proposals has increased. While the SC continues to encourage PLCs to be transparent about their affairs through proper disclosures to the investing public, directors, officials and advisers are reminded that they have to exercise diligence and responsibility in making such disclosures.

In this regard, companies are reminded to adhere to the requirements as set out in the KLSE Listing Requirements. Directors, officials and advisers of PLCs are cautioned against making unwarranted promotional remarks and exaggerated predictions on the future prospects of their companies that may have an impact on the value of their shares that is not justified by actual developments in the company. PLCs should refrain from announcing any corporate exercises that are not likely to materialise.

In disclosing the periodic and interim statements, directors, officials and advisers of PLCs are reminded that the announcements made accompanying the interim financial results should not contain material misstatements of facts and inconsistencies with that reported in their earnings results. Therefore any information in the continuing reporting process of the operating activities and status to date of companies must be based on the same measurement basis and the same accounting principles and practices, as are employed in the annual financial statements.


Issued on behalf of the Securities Commission. Members of the press requiring assistance may contact tel no. 03-6548513 (Ann Teoh) / 03-6548184 (Azmi Hariss Ibrahim) or fax no. 03-6515078 or e-mail: [email protected]

Background information:

The Securities Commission, a statutory body reporting to the Minister of Finance, was established under the Securities Commission Act 1993. It is the sole regulatory agency for the regulation and development of capital markets. The SC has direct responsibility for supervising and monitoring the activities of market institutions, including the exchanges and clearing houses, and regulating all persons licensed under the Securities Industry Act 1983 and Futures Industry Act 1993.

More information about the SC is available on its homepage at
about the SC
The Securities Commission Malaysia (SC) was established on 1 March 1993 under the Securities Commission Act 1993 (SCA). We are a self-funded statutory body entrusted with the responsibility to regulate and develop the Malaysian capital market.

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