Professional Documents
Culture Documents
Question 1
Explain the meaning of material information in the context of Chapter 9.
Provide examples for your explanation.
Answer:
The Bursa Malaysia Listing Requirements (BMLR) requires all public listed
company to make an immediate public disclosure pertaining to any material
information relating to the company as required under the provision of paragraph
9.03(1).
Answer:
The first event in which immediate disclosure must be made to Bursa Malaysia
is in the event where the listed issuer enters into a joint venture agreement or merger
with another company. The information relating to entering into a joint venture
agreement or merger with another company constitutes information that may have a
material effect on the price, value, or market activity of the listed issuer as well as the
decision of the holder of securities of the listed issuer. Besides joint venture or
merger, information pertaining to the acquisition or loss of a contract, franchise, or
distributing rights also is an example of the specific situations that requires immediate
disclosure to the Exchange.
Answer:
Answer:
The last circumstance when the listed issuer should announce the information
withheld to the Exchange is when the listed issuer becomes aware of the signs that
insider trading may be taking place. In the event where the listed issuer learns that
there are insider trading happening as a result of such material information being
withheld from the public, the listed issuer must make an immediate announcement to
the Exchange about the information as soon as it becomes aware of such insider
trading activity.
Question 5:
Discuss the procedure of fullest possible public dissemination as stated in
the paragraph 9.08.
Answer:
Answer:
In ensuring that the content of the announcement is balanced and fair, there
are certain guidelines given under subparagraph 9.16(1)(c) pertaining to the things to
avoid in preparing the content of the announcement. As according to the guidelines,
the content must avoid, amongst others, the omission of material facts which may
affect the materiality of the information including any material information that may be
unfavorable to the public or the listed issuer or by slighting of such facts. Example of
the act of slighting an unfavorable fact is by burying the facts at the end of the press
release. The content must include all material information relating to the subject
matter of the public announcement without omitting any details even the smallest
ones if such material information would have a material effect on the investment
decision of the public or investors.
The content of the announcement also should avoid from portraying any
favourable possibilities as certain or more probable than it actually is. This is to
ensure that listed issuer does not overemphasizing the favourable possibilities to the
extent of it becoming a lie. The content also should not reflect any representation
relating to future performance, occurrence, or matter unless it is accompanied by
adequate justification or reasonable ground as the basis of making such
representation. This is to ensure that no misrepresentation is included in the content
of the announcement that may impair the balanced and fair aspect of the
announcement.
Not only that the content of public announcement that is negative in nature
should not be phrased in a way that creates a positive implication to the public. The
content released should only reflect the actual circumstance of the matter and cannot
be phrased to imply a positive effect that is not certain which can be misleading. The
content also should avoid the use of any promotional jargon that may induce
investment or create interest of the public in the securities of the listed issuer rather
than to inform the public on the matter.
In the case where the listed company appointed an adviser to submit the
announcement to the Exchange on behalf of the listed company, the adviser so
appointed is also bound by the guidelines provided under subparagraph 9.16(1)
pertaining to the content of the public announcement to be released, as discussed
above, as imposed by the provision of subparagraph 9.16(2) of BMLR.