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FAQ 10.51

Recurrent related party transaction of a revenue or trading nature and necessary for its day to day operations ("RRPT")

 

10.51​ ​Pursuant to paragraph 11 of Annexure GN8-A, a listed corporation must disclose the thresholds for the approval of RRPTs within its group of corporations.
(a)What is the approval referred to in paragraph 11?
​It refers to the listed corporation's internal approval.
(b)Does Bursa Securities prescribe these thresholds? 
​No, the listed corporation may determine the appropriate thresholds for the approval of RRPTs within its group of corporations.
(c)A Bhd currently has its own internal authority matrix for approvals of transactions/procurement.  However, this authority matrix makes no distinction between a transaction/procurement which involves the interest of a related party and a transaction/procurement which does not involve the interest of a related party.  Can A Bhd use this authority matrix for the purpose of disclosure pursuant to paragraph 11 of Annexure GN8-A?
​Yes, so long as the said authority matrix is wide enough to cover the RRPTs for which shareholders approval is being sought, A Bhd may use its internal authority matrix for the purpose of disclosure under paragraph 11 of Annexure GN8-A.