Cash Companies
8.15
X Bhd has been classified as a Cash Company by Bursa Securities. Pursuant to Rule 8.03(5)(a)(i) of the ACE LR, X Bhd submits a proposal to acquire a new core business to Bursa Securities for approval. While X Bhd is awaiting Bursa Securities' approval, it has ceased to trigger the Cash Criterion. Can X Bhd apply to Bursa Securities for it to be no longer considered a Cash Company?
No, pursuant to Rule 8.03(8) of the ACE LR, X Bhd must complete the implementation of the proposal before it can apply to Bursa Securities for it to be no longer considered a Cash Company. So, even though X Bhd has ceased to trigger the Cash Criterion, that would not entitle it to be no longer considered as a Cash Company until it has completed its proposal to regularise its condition.