Eligibility, roles and responsibilities of a Sponsor
4.3
Pursuant to Rule 4.08(4) of the ACE LR, a Sponsor must not sponsor an applicant or listed corporation if it has 5% or more of the enlarged issued and paid-up share capital in the applicant or listed corporation. Are shares held by the Sponsor’s director or employee included for the purpose of computing the 5% shareholding?
No, only shares held by the Sponsor is counted for the purpose of determining whether the Sponsor holds 5% or more of the enlarged issued and paid-up share capital in the applicant or listed corporation. However, the Sponsor must still assess if its directors’ and employees’ shareholding in the Sponsored Corporation would impair its ability to discharge its functions independently.