GN3 Companies
8.28
On 3 February 2010, X Bhd triggers the Cash Criterion and announces that it is a Cash Company. On 2 June 2010, X Bhd also triggers one of the Prescribed Criteria and announces that it is a GN3 Company.
(a)
Must X Bhd comply with the regularisation obligations set out in Rule 8.03 (as a Cash Company) or 8.04 (as a GN3 Company) of the ACE LR?
X Bhd must comply with the stricter obligations i.e. those imposed on a Cash Company under Rule 8.03 and Guidance Note 2 of the ACE LR. Among others, the listed corporation must place at least 90% of its cash and short-dated securities in an account opened with a financial institution licensed by Bank Negara Malaysia and operated by a custodian.
(b)
What is the applicable timeframe for X Bhd to submit its proposal to regularise its condition as a Cash Company and GN3 Company?
X Bhd must regularise its condition by submitting a proposal to Bursa Securities within 12 months from the date X Bhd announces that it is a Cash Company, i.e. by 2 February 2011.
Must X Bhd regularise its condition by undertaking a regularisation proposal/plan under Rule 8.03(5)(a) or that under Rule 8.04(3)(a) (i) of the ACE LR?
X Bhd must undertake a regularisation proposal under Rule 8.03(5)(a) of the ACE LR. This proposal must be able to regularise X Bhd's condition as a Cash Company and GN3 Company. In this regard, the proposal must be one to acquire a new core business as required under Rule 8.03(5)(a)(i), and which will also fulfill the conditions set out in paragraphs 5.2 and 5.3 of Guidance Note 3.