Problematic to have too many shareholders

I agree with senior correspondent Goh Eng Yeow ("Time for SGX to relook its trading structure?"; Nov 21).

The cut in board lot size from 1,000 shares to 100 shares should not apply to penny stocks, defined as companies with share prices of less than $1.

Too many shareholders create additional administrative burdens and raise costs for companies, for example, in the printing of annual reports and circulars.

The Singapore Exchange (SGX) should consider setting criteria for companies on stock liquidity, as part of listing requirements, and consider putting companies with low stock liquidity under its watch list.

Ang Bock Leng

A version of this article appeared in the print edition of The Straits Times on November 25, 2016, with the headline 'Problematic to have too many shareholders'. Print Edition | Subscribe