Related party transactions
10.44
PLC A proposes to enter into Transactions 1 and 2 with C Sdn Bhd and Z Pte Ltd respectively. The terms and conditions of the transactions were agreed upon on 30 January 2010. Mr. C, a director and major shareholder of C Sdn Bhd, was also a director and major shareholder in PLC A but has resigned as a director of and disposed off his shares in PLC A on 1 September 2009 and 29 September 2009 respectively. Mr. Z, a director and major shareholder of Z Pte Ltd, was also a major shareholder of PLC A before 1 March 2009. Are Transactions 1 and 2 related party transactions?
As Transaction 1 involves the interest of Mr. C who was a director and major shareholder of PLC A within the preceding 6 months from 30 January 2010, Transaction 1 is regarded as a related party transaction pursuant to the Main LR.
However, as Transaction 2 merely involves the interest of Mr. Z who is no longer a major shareholder within the preceding 6 months from 30 January 2010, Mr. Z is not regarded as a major shareholder under the new definition of "major shareholder" and Transaction 2 would not be regarded as a related party transaction pursuant to the Main LR.