I know this is not really tax related, but it’s the big news for the day and I am seriously confused over it.
The news: Here.
The extract…
KUALA LUMPUR: The 30% bumiputra equity requirement for Malaysian companies seeking public listing is now repealed, said Prime Minister Datuk Seri Najib Tun Razak.
However, these companies are now required to offer 50% of the public shareholding spread to bumiputra investors.
For the uninitiated, public shareholding spread is the percentage of shareholding in a listed company that must be held by the public. In numerical terms, that’s at least 1,000 people. 999 persons does not constitute the public, got it? Under Bursa rules, the current minimum public shareholding spread is 25%. But what I understand from an investment banker is this… its near impossible to even meet the 1,000 people-equals-to-public requirement in the first place. Usually, listed companies would just make an application for exemption from having to comply with this. To top that off, the determination of who gets how much shares is subject to a public ballot. Yes, lucky-draw style.
Now, if a question hinting heavily on the nonsensical impracticality of the “groundbreaking” announcement hasn’t popped up in your head already by now, go back to the top and read this post again.
2 responses so far ↓
Becky // July 1, 2009 at 12:24 pm
Top that with 30% is now a macro target … (?????) ….define macro , pls ? cos sounds the same or worse to my simple brain …. tsk tsk …
TD: It means they’re hiding it. Just the way they can make RM10b dissapear by creating an Equity Whatchamaycallit Fund.
pahnur // July 8, 2009 at 8:28 pm
……and they are going to teach the numerics in BM to our kids in the near future…expect to get more confused too…
TD: It’s never gonna get through their thick skulls that it ain’t the language that’s the problem.