Demutualisation (Kuala Lumpur Stock Exchange)Act 2003(Act 632) (as at 29th Mei 2014)
Akta Demutualisasi(Bursa Saham Kuala Lumpur) 2003
Detailed Contents Of Demutualisation (Kuala Lumpur Stock Exchange)Act 2003 :
The Demutualisation (Kuala Lumpur Stock Exchange) Act 2003 is an act of the Parliament of Malaysia that provided for the demutualisation of the Kuala Lumpur Stock Exchange (KLSE). The act was passed on 22 April 2003 and came into operation on 28 August 2003. It was later amended in 2007 to allow for the listing of the Bursa Malaysia Berhad, the successor company to the KLSE.
Demutualisation is the process of converting a mutual organization, such as a stock exchange, into a company that is owned by shareholders. The demutualisation of the KLSE was aimed at increasing the efficiency, competitiveness, and transparency of the Malaysian capital market. It was also intended to enable the KLSE to raise capital more easily and to improve its ability to respond to changes in the market.
Under the Demutualisation (Kuala Lumpur Stock Exchange) Act 2003, the KLSE was required to establish a holding company, which would then become the parent company of the KLSE. The holding company was to be registered as a public company under the Companies Act 1965 and was to be named Bursa Malaysia Berhad. The KLSE was to transfer its assets and liabilities to the holding company in exchange for shares in the holding company. The shares were then to be distributed to the members of the KLSE.
The act provided for the conversion of the KLSE from a company limited by guarantee to a company limited by shares. This meant that the members of the KLSE would no longer have a guarantee of limited liability. Instead, they would become shareholders in the holding company, with their liability limited to the amount of their shareholdings.
The act also provided for the establishment of a regulatory framework for the demutualised exchange. The Securities Commission was given the power to regulate the exchange and to ensure that it complied with the relevant laws and regulations. The exchange was required to establish a board of directors and to appoint a chief executive officer. The board was to be responsible for the management of the exchange, while the CEO was to be responsible for its day-to-day operations.
Overall, the Demutualisation (Kuala Lumpur Stock Exchange) Act 2003 was a significant step in the development of the Malaysian capital market. By demutualising the KLSE and establishing a new holding company, the act provided a framework for the development of a more efficient, competitive, and transparent capital market in Malaysia.