What are the criteria to be classified as PN17 companies?
Filed Under (Bursa Malaysia) by Webmaster on 02-06-2010
Tagged Under : PN17 criteria
Many would have wondered what criteria that caused a company to classified as PN17 by Bursa Malaysia. PN17 are only referred to distress companies in the Main market.
Below are the criteria:
Pursuant to paragraphs 8.04(2) of the Listing Requirements, where a listed issuer triggers any one or more of the following Prescribed Criteria it must comply with the provisions of paragraph 8.04 and this Practice Note:
(a) the shareholders’ equity of the listed issuer on a consolidated basis is 25% or less of the issued and paid-up capital (excluding treasury shares) of the listed issuer and such shareholders’ equity is less than RM40 million;
(b) receivers or managers have been appointed over the asset of the listed issuer, its subsidiary or associated company which asset accounts for at least 50% of the total assets employed of the listed issuer on a consolidated basis;
(c) a winding up of a listed issuer’s subsidiary or associated company which accounts for at least 50% of the total assets employed of the listed issuer on a consolidated basis;
(d) the auditors have expressed an adverse or disclaimer opinion in the listed issuer’s latest audited financial statements;
(e) the auditors have expressed a modified opinion with emphasis on the listed issuer’s going concern in the listed issuer’s latest audited financial statements and the shareholders’ equity of the listed issuer on a consolidated basis is 50% or less of the issued and paid-up capital (excluding treasury shares) of the listed issuer;
(f) a default in payment by a listed issuer, its major subsidiary or major associated company, as the case may be, as announced by a listed issuer pursuant to Practice Note 1 and the listed issuer is unable to provide a solvency declaration to the Exchange;
(g) the listed issuer has suspended or ceased -
(i) all of its business or its major business; or
(ii) its entire or major operations,
for any reasons whatsoever including, amongst others, due to or as a result of -
(aa) the cancellation, loss or non-renewal of a licence, concession or such other rights necessary to conduct its business activities;
(bb) the disposal of the listed issuer’s business or major business; or
(cc) a court order or judgment obtained against the listed issuer prohibiting the listed issuer from conducting its major operations on grounds of infringement of copyright of products etc; or
(h) the listed issuer has an insignificant business or operations.
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