Thursday, 4 August 2011

The Untouchables

"It would perhaps be beneficial for Malaysia to have more independent regulatory authorities representing a wide variety of stakeholders as well as improvement in their accountability and transparency to ensure that the rules and regulations are effectively enforced without any political influence".

From "The (perceived) roles of Corporate Governance in Malaysia: The Views of Corporate Practitioners" by Pik Kun Liew, 2008. An, in my opinion, very interesting article build on 19 interviews with relevant (mostly) managers in listed companies.

I am a strong believer in small, highly motivated, fast moving teams. I would like to recommend forming one such group, completely independent from any other organization, with the specific instructions to look into the protection of the rights of the Minority Investors:

  • General Offers with "de-listing threat"
  • Related Party Transactions
  • Credible Complaints by Minority Investors

I can foresee an interesting dynamic between this group and the Securities Commission and Bursa Malaysia, a dynamic that might have further positive effects.

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