Related party transactions
X Bhd, a listed issuer has obtained a general mandate pursuant to paragraph 10.09 of the Main LR ("Mandate") for provision of financial assistance to its subsidiaries, which constitute related party transactions. If the actual provision of financial assistance exceeds the corresponding value or amount prescribed in the Mandate, does X Bhd have to make an announcement in relation to the excess amount?
Yes, pursuant to paragraph 3.4(a)(ii) of Practice Note 12, if the actual amount of financial assistance provided exceeds the corresponding amount in the Mandate, X Bhd must immediately announce the same notwithstanding that the excess amount does not trigger the Prescribed Limit as referred to in Question 10.22. In addition, if the percentage ratio of the amount of financial assistance provided or rendered in excess of the value or amount prescribed in the Mandate is 5% or more, X Bhd must also comply with the relevant requirements of paragraph 10.08 of the Main LR.