Related party transactions
In respect of a related party transaction where the percentage ratio is 5% or more but less than 25%, an independent adviser must be appointed by the listed issuer in respect of such transaction. Does the independent adviser have to provide a confirmation to Bursa Securities of its eligibility to act as an independent adviser?
No, such a
confirmation by an independent adviser is not required under the Main LR and
only a general undertaking letter under paragraph 2.21(1) of the Main LR is
required. However, an independent adviser must ensure its independence within
the definition of independence under paragraph 1.01 of the Main LR. Under paragraph
10.08(5) of the Main LR, Bursa Securities has the discretion not to allow an
independent adviser to continue to act or be appointed as an independent
adviser if in its opinion, the adviser is deemed not to be independent. Bursa
Securities may also take enforcement action against independent advisers who
misrepresented their independence.