Dear all,
I am a newbie here. I have questions:
What is the meaning of Direct Interest & Deemed Interest in SGX announcement? And what is the different between the two?
Many thanks in advance.
Here's from a google search. I'm not sure how current the information is but I guess it should still be around the same...
If you wish to know how many shares are controlled by management (direct+deemed), you could look at the 'PERCENTAGE OF SHAREHOLDINGS HELD BY PUBLIC' page in the annual reports.
http://rulebook.sgx.com/en/display/displ...finition-d
"direct interest" : in relation to a securities holder, securities registered in his own name and securities held in his direct securities account with CDP
http://appiqs.acra.gov.sg/ops/data/news/..._and_A.pdf
However, section 7 of the Companies Act does not provide that a person has an interest
in shares for the purpose of the substantial shareholding reporting provisions of the
Companies Act merely because his wife or his children have an interest in shares of the
company. However, it would be different if (for example) the wife or child held certain
shares on trust for the substantial shareholder. So in the hypothetical situation, it is not
clear if there is any obligation on a substantial shareholder to report the shareholdings of
his wife and children in the first place.
The substantial shareholding reporting obligation under sections 82, 83 and 84 of the
Companies Act should not be confused with the obligation of a director to report to the
company his shares and interest in shares (including deemed interest in shares) in the
same company or in a related corporation. The substantial shareholding reporting
obligation is on a substantial shareholder of a publicly listed company. The director’s
obligation (which applies to every director of every company) is a separate obligation
under section 165, read with section 164 of the Companies Act. For the purpose of the
director’s obligation, the definition of “deemed interest” is different — a director is
deemed to have an interest in the shares which his wife (who is not a director herself) and
his infant children (who are not directors themselves) hold an interest.