In response to the city-state’s efforts to improve corporate governance practices, the Singapore Exchange Regulation (SGX RegCo ) announced on Tuesday ( Apr 23 ) a proposed rule change to facilitate shareholder adoption of a proposed rule change.
Singapore-listed companies are now exempt from having to react to shareholder requests for special general meetings. Private organizations have always chosen to reject such requests.
Under the current plan, listed firms may be required to take specific actions within 21 days to keep a meeting after a set of shareholders, or even one investor who owns at least 10 per share interest, makes a plea.
According to SGX RegCo, any business that disputes the demand see must submit a court request within the same deadline.
The appointment is available until May 23.
Companies will be more inspired to regard their interests by improving both operating performance and investor returns, according to Tan Boon Gin, CEO of SGX RegCo, adding that companies need to learn what the business is asking for.
Other exchanges, such as the one in the growing market of Hong Kong, have similar laid down rules.
Following a recent rise in investor activism both locally and globally, Singapore has been making constant efforts to improve corporate governance in the nation.
The bourse moved in January 2023 to promote greater transparency regarding the payment information for the CEO and the CEO of the company.
The regulator is currently attempting to force businesses to raise shareholder value, in addition to taking steps to improve market discipline.
According to CEO, SGX RegCo is currently focusing on strengthening the board of companies to improve performance and also to reduce market friction.