On 5 August 2009, D Bhd's public shareholding spread is 18% of its total listed shares (excluding treasury shares).
What are D Bhd's key obligations under the Main LR in relation to this non-compliance?
D Bhd must take immediate steps to comply with the public shareholding spread requirement.
Pursuant to paragraph 8.02(3) of the Main LR, D Bhd must immediately announce to Bursa Securities that it does not comply with the required shareholding spread prescribed under paragraph 8.02(1). D Bhd must include the information set out in paragraph 3.2 of Practice Note 19 in its announcement. After that, D Bhd must announce the status of its efforts to comply with the public shareholding spread requirement for each quarter of its financial year in accordance with paragraphs 3.3 and 3.4 of Practice Note 19.
If D Bhd requires an extension of time to rectify its situation, it must request for an extension under paragraph 8.02(4) of the Main LR. However, even though an extension of time is granted, D Bhd must comply with the public shareholding spread requirement as soon as possible.
On 30 August 2009, D Bhd's public shareholding spread is 9% of its total listed shares (excluding treasury shares). What is D Bhd's additional obligation in regard to its public shareholding spread of 9%?
In addition to the disclosure obligations under Question (a) above, D Bhd must immediately announce to Bursa Securities the information set out in paragraph 5.4 of Practice Note 19.
When will the trading of securities of D Bhd be suspended after its announcement in Question (b) above?
Pursuant to paragraph 16.06(2)(a) of the Main LR, Bursa Securities shall suspend trading of securities of D Bhd upon expiry of 30 market days from the date of D Bhd's announcement. However, if the public shareholding spread of D Bhd increases to above 10% before the expected date of suspension, D Bhd should immediately inform Bursa Securities of its improvement in its public spread and seek its confirmation on whether the suspension will still be imposed.
In addition, where appropriate, Bursa Securities may also take such enforcement action as it deems fit against D Bhd pursuant to paragraph 16.19 of the Main LR.