LONDON: Singapore Exchange is proposing a rule change to help shareholders in calling special general meetings, as the city-state attempts to improve corporate governance practices, the bourse's regulatory arm said on Tuesday.
Singapore-listed firms currently have no regulatory obligation to respond to shareholder calls for special general meetings. Domestic companies have historically been on the side of not granting such requests.
Under the current proposal, listed firms will be required to take certain action within 21 days to hold a meeting after a set of shareholders, or even one shareholder who owns at least 10 per cent stake, make a request.
"If investors have a stronger say, companies will be more motivated to consider their interests by improving both operational performance and shareholder returns," said Tan Boon Gin, CEO of SGX RegCo.
Singapore has been making constant efforts to improve corporate governance in the country after a recent surge in investor activism locally and among global firms.
In January last year, the bourse had moved for better transparency in terms of chief executive officer and individual company directors payment details. - Reuters