As the city-state works to improve corporate governance procedures, the Singapore Exchange Regulation (SGX RegCo) is recommending a rule modification to assist shareholders in calling special general meetings, the bourse’s regulatory arm announced on Tuesday (Apr 23).
Currently, there is no legal requirement for Singapore-listed companies to react to shareholder requests for special general meetings. Historically, domestic businesses have refused to comply with such requests.
According to the present proposal, listed corporations must take certain actions, like calling a meeting within 21 days when a group of shareholders, or even just one shareholder with a minimum of 10% stake, requests it.
According to SGX RegCo, any business that contests the legality of the requisition notice has the same time to file a lawsuit. The period for public consultation is through May 23.
Tan Boon Gin, CEO of SGX RegCo, stated that “if investors have a stronger say, companies will be more motivated to consider their interests by improving both operational performance and shareholder returns.” She also added that businesses must pay attention to what the market is requesting. In January 2023, the bourse moved for better transparency in payment details for the CEO and individual company directors.
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