General requirements for new issue of securities
6.14
A Bhd, a listed corporation, is issuing shares to a director of its subsidiary, C Sdn Bhd for cash. The director is not a director or major shareholder of A Bhd or its holding company or a person connected with such director or shareholder. Must A Bhd obtain shareholder approval for the issuance of securities?
No, Rule 6.07 of the ACE LR does not impose any obligation on A Bhd in relation to such issuance of securities. Hence, shareholder approval is not required pursuant to Rule 6.07. In addition, A Bhd need not comply with the requirements of Part E of Chapter 10 of the ACE LR as this is an issuance of securities by the listed corporation for cash and hence, exempted under Rule 10.08(11)(a) of the ACE LR. However, please note that the general disclosure obligations under Chapter 9 of the ACE LR may apply.