SGX RegCo proposed a new rule change to require listed companies to respond to shareholder calls for general meeting

On 23 April 2024, the Singapore Exchange Regulation (“SGX RegCo”) announced the proposal of a rule change to require listed issuers to assist shareholders in ensuring that a general meeting occurs as soon as practicable once the shareholders have requisitioned for it.

Currently, issuers have no regulatory obligation to respond to shareholder calls for general meetings.

However, under the proposed rule change, issuers are required to take certain action within 21 days of deposit of a requisition notice. Such action includes, among other things, sending documents, such as notices, circulars and proxy forms, to shareholders and releasing announcements and documents, such as notices, circulars and proxy forms, on SGXNet.

In the event an issuer disputes the validity of a requisition notice, the issuer is required to apply for a court ruling within the same 21 days of deposit of the requisition notice.

According to SGX RegCo, this proposed rule change aims to motivate companies to consider their shareholders’ interests by improving both operational performance and shareholder returns.

The proposed rule change will be open for public consultation till 23 May 2024.

Key Contacts: Remy Choo Zheng Xi; Terence Yeo

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