DDWG Raises Concerns with Directors of Issuer

Kuala Lumpur, Malaysia - The Due Diligence Working Group (DDWG) has raised concerns with the directors of an issuer regarding the scope and extent of due diligence required for a corporate proposal.

Background

The DDWG is comprised of the Public Accountant (PA), senior representatives of the issuer, and relevant advisers or experts. Its purpose is to ensure that none of the statements and information lodged with, submitted to, or deposited with the Securities Commission Malaysia (SC) is false or misleading or contains any material omission.

Concerns Raised

According to sources, the DDWG has been working closely with the directors of the issuer to ensure that all necessary due diligence procedures are carried out. However, concerns have been raised regarding the scope and extent of the due diligence exercise, which is dependent on the type of information disclosed and the nature of the corporate proposal.

Scope and Extent of Due Diligence

“The DDWG needs to be fully briefed on the corporate proposal, including the details, basis, and objective of its structure and the processes involved in its implementation,” said a source familiar with the matter. “The scope and extent of due diligence required will vary depending on the type of issuer or business.”

Importance of Competent Participation

The DDWG has also emphasized the importance of having competent and senior-level participation by its members at all meetings.

“There should be a reasonable level of challenge and discussion amongst those involved in the DDWG, so that where possible, a collective agreement can be reached to support the information that is being disclosed in the offering documents,” said another source.

SC Emphasis

The SC has emphasized the need for issuers to ensure that their due diligence procedures are robust and comprehensive.

“Issuers must take reasonable care to ensure that the information disclosed in the offering documents is accurate, complete, and not misleading,” said a spokesperson for the SC.

Regulatory Environment

The DDWG’s concerns come as the Malaysian capital market continues to evolve, with new regulations and guidelines being introduced regularly. Issuers are under increasing pressure to ensure that their due diligence procedures are up-to-date and comply with regulatory requirements.

Next Steps

The matter is still under investigation, and it is unclear what actions will be taken by the SC or the issuer’s directors in response to the DDWG’s concerns.