SGX seeks views on changes to listing rules

SGX Centre 1 (left) at Shenton Way Road in the Raffles Place District.
SGX Centre 1 (left) at Shenton Way Road in the Raffles Place District. PHOTO: ST FILE

The Singapore Exchange (SGX) wants public feedback on proposals to change listing rules, including whether companies are allowed to send notices and documents electronically to shareholders.

The proposed changes in areas relating to directors, shareholders and shares are aimed at aligning listing rules with the amended Companies Act passed in October 2014, the SGX said in a statement last night.

It proposes to allow listed companies to send certain notices and documents, such as circulars and annual reports, electronically if shareholders agree.

However, it notes that some investors may have concerns if they do not have the option of receiving physical copies of such material. The SGX wants feedback on this area.

It also wants comments on the safeguards to adopt when companies send documents electronically, and feedback on policy positions highlighted by other recent statutory changes.

One of the proposed changes is not to consider insurance coverage and indemnities for directors as interested person transactions if the insurance coverage and indemnity are specifically permitted under the Companies Act. This will apply to all listed companies, whether incorporated in or outside Singapore. But foreign-incorporated companies must also comply with their respective company laws.

The proposed changes in areas relating to directors, shareholders and shares are aimed at aligning listing rules with the amended Companies Act passed in October 2014.

The SGX is also proposing changes to rules relating to the restraint on exercising voting rights and the treatment of shares held by a subsidiary in a holding company.

The proposals are up for public consultation until Feb 12.

A version of this article appeared in the print edition of The Straits Times on January 12, 2016, with the headline 'SGX seeks views on changes to listing rules'. Print Edition | Subscribe