Published: Tuesday July 5, 2011 MYT 1:53:00 PM
Lack of understanding among directors on disclosure requirements of Bursa listing
KUALA LUMPUR: A lack of understanding is still prevalent among directors on the disclosure requirements of listed companies under Bursa Malaysia's listing rules.
Head of Listing Division, Bursa Malaysia, Inderjit Singh said the common issues are of public listed companies (PLC) only complying with minimum requirements as well as a lack of proper and effective policies to identify material information.
"Directors should disclose immediately, material information of decisions made concerning any corporate proposals as soon as key decisions are agreed to by the board of directors.
"This is even if there are still other conditions that need to be considered later on," he added.
He was speaking at the Malaysian Institute of Chartered Secretaries and Administrators Annual Conference here today.
He also stressed that there should be a level playing field in terms of disclosing information, as confidential information that has been leaked out to the press or a selected group of people, should be immediately announced to Bursa Malaysia.
In this respect, he said, the exchange aims to promote a transparent capital market, which enables investors to make timely and informed decisions.
"Companies should announce immediately to Bursa Malaysia any information that affects share price or volume.
"It is important for companies to provide a thorough dissemination of information of corporate developments," Inderjit added.
He also said, in many instances, directors rely on other people for guidance in fulfilling the disclosure requirements under Bursa Malaysia's Listing Rules and that is where company secretaries act as advisors.
"It is also often found that companies delay in announcing financial statements as well as variance in audited and unaudited accounts," he added.
Another prevailing issue among companies, he said, is that no announcements are made on the default of credit facilities. - BERNAMA