BT PODCasts
Changes to Companies Act needed
In collaboration with Robson Lee
Robson Lee
Senior corporate finance and capital markets lawyer
Minority shareholders frequently struggle to convene Extraordinary General Meetings (EGMs) due to board resistance, resulting in significant costs and delays.
In a recent Business Times podcast, Howie Lim interviews veteran corporate and capital markets lawyer Robson Lee on the effectiveness of new Singapore Exchange Regulation (SGX RegCo) proposals aimed at addressing these challenges.
Despite proposed rules mandating boards to either convene EGMs within 21 days or seek court approval, Lee contends these measures are insufficient without legislative changes to the Companies Act.
Lee emphasises the need for collaborative efforts between SGX RegCo and the government to amend both listing rules and the Companies Act. He also discusses the growing trend of shareholder activism and the importance of boards engaging in dialogue with minority shareholders to resolve disputes before resorting to court.
While the proposed rules provide some protection against misuse of EGMs for personal agendas, Lee insists that comprehensive legislative reform is essential to truly empower minority shareholders.
Highlights
00:31 02:04 05:26 08:44 11:37
Proposed new rules and their impact Measures to hold companies accountable Regulatory responses and future changes Why SGX RegCo’s proposed changes are inadequate Is being litigious really the only solution?
Produced by: Howie Lim (howielim@sph.com.sg), Claressa Monteiro & Lee Kim Siang Edited by: Howie Lim & Claressa Monteiro
btvisual: CHARMAINE MARTIN
Do note: This podcast is meant to provide general information only. SPH Media accepts no liability for loss arising from any reliance on the podcast or use of third party’s products and services. Please consult professional advisers for independent advice.
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More about Robson Lee: robsonlee.com