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.