Below are key takeaways from ISS’ recently released 2020 Singapore Proxy Season Review. The full report is available to institutional subscribers by logging into ISS Link then selecting the Governance Exchange and its Report Center tab and to corporate subscribers by logging into Governance Analytics then selecting the Governance Exchange and the Report Center tab.
- COVID-19 effect on Singapore proxy season timeline: The Singapore Exchange Limited (SGX) granted extension waivers and automatic extensions for issuers to hold their annual general meetings (AGMs) at a later date than as required by the Listing Rules in line with adjustments made due to the effects of COVID-19.
- Implementation of temporary measures in light of the current business climate: Singapore Exchange Regulation (SGX RegCo) implemented measures that may support issuers in the difficult business climate brought about by COVID-19. These measures included the suspension of entry into the SGX financial watchlist and an enhanced share issuance limit for issuances with preemptive rights.
- Removal of minimum trading price rule: Effective June 1, 2020, SGX RegCo abolished the requirement for companies to maintain a minimum trading price (MTP), attributable to the decreasing number of manipulation alerts being triggered in the Singapore market.
- SGX RegCo removes quarterly reporting requirement for qualified issuers: SGX RegCo amended its requirement for companies to release quarterly financial reports. Only issuers who have auditor issues and regulatory concerns are required to continue with quarterly reporting.
- Proposals for new enforcement framework and whistleblowing policies: SGX RegCo opened a public consultation seeking market opinion on allowing the regulatory body to publicly censure issuers in breach of the Listing Rules and better protection for whistleblowers within companies.
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