A company which raises its capital from the public by inviting the public to subscribe shares must issue a prospectus. A prospectus, unless it is issued by an unlisted recreational club, is governed under the Capital Market and Services Act 2007 (“CMSA”). Offer or invitation in respect of shares or debentures made to the public by an unlisted recreational club is regulated by Section 36A Companies Act 1965. Contents of the prospectus is regulated and governed under CMSA and Bursa Listing Requirements. Should there be any changes in the content after registration of prospectus but before issuance of shares, a supplementary prospectus is issued. 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.
| Self-test 4.1
|Question to self-test 4.1||Suggested answers to self-test 4.1|