What are the criteria to be classified as GN3 companies?
Filed Under (Bursa Malaysia) by Webmaster on 02-06-2010
Tagged Under : GN3 criteria
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.
