What are the criteria to be classified as GN3 companies?

Filed Under (Bursa Malaysia) by Webmaster on 02-06-2010

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I posted the criteria for PN17 companies and here in this posting I will outline the criteria to be classified as GN3 company. GN3 classification is applicable for ACE market companies.

Pursuant to Rule 8.04(2) of the Listing Requirements, where a listed corporation triggers any one or more of the following Prescribed Criteria, it must comply with the provisions of Rule 8.04 and this Guidance Note:

(a) the shareholders’ equity of the listed corporation is 25% or less of the issued and paid-up capital of the listed corporation;

(b) where the listed corporation has incurred loss in any 1 full financial year commencing on or after its listing, which equal to or exceed the amount of its shareholders’ equity at the end of the said financial year and the shareholders’ equity is equal to or less than 50% of the issued and paid-up capital of the listed corporation at the end of the said financial year;

(c) where the listed corporation has incurred aggregated losses in any 2 consecutive full financial years commencing on or after its listing (“said financial period”) -

(i) which exceed the amount of its shareholders’ equity at the end of the said financial period;

(ii) the loss incurred in the second full financial year of the said financial period is 50% or more of the loss incurred in the first full financial year of the said financial period; and

(iii) the shareholders’ equity is equal to or less than 50% of the issued and paid-up capital of the listed corporation at the end of the said financial period;

(d) receivers or managers have been appointed over the asset of the listed corporation, its subsidiary or associated company which asset accounts for at least 50% of the total assets employed of the listed corporation;

(e) a winding up of a listed corporation’s subsidiary or associated company which accounts for at least 50% of the total assets employed of the listed corporation;

(f) the auditors have expressed an adverse or disclaimer opinion in the listed corporation’s latest audited financial statements;

(g) the auditors have expressed a modified opinion with emphasis on the listed corporation’s going concern in the listed corporation’s latest audited financial statements and the shareholders’ equity of the listed corporation is 50% or less of the issued and paid-up capital of the listed corporation;

(h) a default in payment by a listed corporation, its major subsidiary or major associated company, as the case may be, as announced by a listed corporation pursuant to Guidance Note 5 and the listed corporation is unable to provide a solvency declaration to the Exchange;

(i) the listed corporation 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 corporation’s business or major business; or

(cc) a court order or judgment obtained against the listed corporation prohibiting the listed corporation from conducting its major operations on grounds of infringement of copyright of products etc; or

(j) the listed corporation has an insignificant business or operations. This is not applicable to a Sponsored Corporation during the Sponsorship Period.

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What are the criteria to be classified as PN17 companies?

Filed Under (Bursa Malaysia) by Webmaster on 02-06-2010

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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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FBM KLCI continue to move up

Filed Under (Bursa Malaysia) by Webmaster on 12-04-2010

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The local stock market started the week on a high note with the FTSE Bursa Malaysia KL Composite Index (FBM KLCI) adding 7.4 points to 1,341.38 at 10.30 am.

The benchmark index opened 2.41 points higher at 1,336.39 at 9 am.

Advancers led decliners by 308 to 190 while 233 counters traded unchanged. Turnover stood at 320.1 million shares worth RM345.8mil.

TA Securities said some heavyweights were likely to appreciate further after recent weakness.

It added that the persistent strength in global markets due to increasing signs of the global economic recovery would be sustainable given the higher-than-expected retail sales numbers last week in the US and Japan would spillover to the local stock market.

Meanwhile, HwangDBS said there was a possibility that the local bourse would resume its uptrend ahead.

“This may be the case if the benchmark index cuts above the 1,340 resistance line in a convincing manner, making its way then towards the next resistance of 1,375,” it said.

The research house expects share prices on the local stock exchange to turn up today following Wall Street’s buoyant performance on Friday, which lifted major US equity barometers to close at fresh highs since the bull run started in March last year.

Automotive and related stocks continued to lead gainers. Tan Chong continued its uptrend from last week, rising 45 sen to RM4.98, Warisan gained 30 sen to RM2.85 and APM was 20 sen higher to RM4.54.

PPB Group added 22 sen to RM17.86, Tenaga 19 sen to RM8.70 while MISC saw its shares climb 22 sen to RM8.71.

Talam was the most active with 19.5 million shares done. The counter rose 0.5 sen to 13.5 sen.

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