FAQ 8.16

*Listed corporations with inadequate level of operations*

8.16	Is there any difference in the obligations of an affected listed corporation¹ under the previous framework set out in Guidance Note 3 and the new framework in Rule 8.03A of the ACE LR?
	Under the new framework in Rule 8.03A of the ACE LR, generally the obligations of the affected listed corporation remain the same as that of a GN3 Company including the requirement to submit and implement a regularisation plan within the prescribed timeframe. However, taking into consideration that there are differences between these listed corporations (an affected listed corporation vis-a-vis a GN3 Company), under the new framework -

	(a)	an affected listed corporation will not be tagged or classified as a “GN3” Company;

	(b)	if the affected listed corporation fails to regularise its condition, Bursa Securities has the discretion to suspend and delist its securities, whilst in the case of a GN3 Company, the suspension and delisting is automatic; and

	(c)	there is an express provision in Rule 8.03A for the affected listed corporation to apply not to undertake any regularisation plan if it is able to demonstrate to Bursa Securities’ satisfaction that its remaining business is sustainable and has growth prospects with appropriate justifications, and its level of operations remains suitable for continued listing.



	¹	As stipulated in Rule 8.03A(3) of the ACE LR, an affected listed corporation refers to a listed corporation which has triggered the criteria of inadequate level of operations under Rule 8.03A(2) of the ACE LR namely that the listed corporation has –
		(a)	suspended or ceased all of its business or its major business; or
		(b)	suspended or ceased its entire or major operations; or
		(c)	an insignificant business or operations.

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FAQ 8.16