General requirements for new issue of securities
A Bhd, a listed issuer, 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, paragraph 6.06 of the Main LR does not impose any obligation on A Bhd in relation to such issuance of securities. Hence, shareholder approval is not required pursuant to paragraph 6.06. In addition, A Bhd need not comply with the requirements of Part E of Chapter 10 of the Main LR as this is an issuance of securities by the listed issuer for cash and hence, exempted under paragraph 10.08(11)(a) of the Main LR. However, please note that the general disclosure obligations under Chapter 9 of the Main LR may apply.