Regulatory Watchdog Cracks Down on Corporate Proposals, Demands Transparency

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Malaysia’s regulatory body has issued new guidelines for corporate proposals, emphasizing the importance of transparency and due diligence to boost investor confidence and ensure accountability.

New Guidelines for Corporate Proposals

Under the revised rules, companies submitting corporate proposals must:

• Notify the Securities Commission (SC) immediately if they become aware of any material changes that could impact their proposal
• Disclose potential conflicts of interest and take steps to mitigate them
• Ensure principal advisers (PAs) have adequate resources, expertise, and supervision in place to handle corporate proposals

Changes to Principal Advisers

Companies must also inform the SC of any changes to their PA mid-stream, including:

• Reasons behind such changes
• Cooperation from both outgoing and incoming PAs to ensure a seamless transition and maintain transparency throughout

Strengthening Due Diligence

The revised guidelines aim to strengthen the due diligence process by ensuring that all stakeholders have access to accurate information. The SC will closely monitor compliance with these new rules, which came into effect on [insert date].

Key Takeaways

• Companies must notify the SC immediately of any material changes affecting their corporate proposal.
• PAs and experts must disclose potential conflicts of interest and take steps to mitigate them.
• Companies must inform the SC of changes to their PA mid-stream and cooperate in the handover process.
• The revised guidelines aim to strengthen due diligence and ensure transparency throughout the corporate proposal process.

Source

Securities Commission Malaysia, [insert date].