The Kuala Lumpur Stock Exchange (KLSE) recently amended the KLSE Listing Requirements to provide companies more flexibility with Share-Buy-Backs. Effective November 1, listed companies will have the option to issue a “Share Buy-Back Statement,” a document containing relative, concise information, to renew an existing shareholders mandate. This means listed companies will have two options to renew an existing shareholder’s mandate: issue a shareholder’s circular (as is currently required), or issue a “Share Buy-Back Statement” accompanying the notice of the general meeting.
Other flexibilities advanced from the amendments include the option for a listed company to appoint up to two brokers for the purpose of purchasing its own shares, or reselling treasury shares on the KLSE.
These amendments are efforts to enhance efficiency in the marketplace, KLSE says, and are expected to encourage Share Buy Backs, which will help stabilize security prices.