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187 Circulars distinguish with prospectus

Circulars distinguish with prospectus

A company may decide to issue further capital to existing shareholders in a fixed proportion to their existing holdings.

Such an operation is not a public issue and, therefore no prospectus is required – but shareholders must be provided with certain information and normally this is provided in a circular letter.

Prospectus provisions are not applicable to all bonus issues.

The Bursa Malaysia will not entertain any rights issue in which the rights cannot be made renounceable in favour of a third party. In the case of a rights issue which is renounceable in favour of any persons other than existing members or debenture holders, and where an application has been or will be made for permission to deal with or quote such shares or debentures on the Bursa, an abridged prospectus must be registered.

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Circulars distinguish with prospectus Copyright © 2011 by Wawasan Open University. All Rights Reserved.

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