Singapore Exchange suggests changing the rules to make it easier for shareholders to call extraordinary meetings
A proposed rule amendment by the Singapore Exchange (SGX) aims to improve the procedure that shareholders can use to call extraordinary meetings. The purpose of this action is to enhance corporate governance requirements in listed firms and empower shareholders. If the proposed regulation is accepted, shareholders will have a more efficient and effective way to schedule extraordinary meetings, giving them a bigger say in important choices that impact the businesses they invest in.
To enhance corporate governance standards, Singapore Exchange Regulation (SGX RegCo) is proposing a rule change to assist shareholders in calling special general meetings. Currently, there is no legal requirement for Singapore-listed companies to respond to shareholder calls for special general meetings, and traditionally, local businesses have tended to turn down these requests.
According to the present proposal, listed corporations will have to do certain things, like call 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 amount of 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.
There are similar established regulations on other exchanges, such the one in Hong Kong’s expanding market.
Following a recent upsurge in investor activism among both local and international corporations, Singapore has been working nonstop to enhance corporate governance throughout the nation.
The exchange made a step in January 2023 to improve payment data for the CEO and individual directors of the company.
Apart from enhancing market discipline, the regulator is presently engaged in compelling corporations to augment their shareholder value.
According to the CEO, SGX RegCo is now trying to strengthen the boards of companies in order to improve performance and lessen market friction.
