04-09-2019, 08:00 AM
It looks like SGX is serious on making changes to quarterly reporting, as "concern about compliance costs has been repeatedly raised among market professionals and listed companies..."
https://www.businesstimes.com.sg/compani...too-narrow
Some questions/comments:
1. With regards to a 'risk-based' approach of deciding who is subject to quarterly reporting, and who isn't, how is risk defined? And who decides what is risky?
2. If companies are threatening to delist, or not IPO, because of "high compliance costs," and if it is in the interest of SGX to maintain a healthy public capital market, maybe SGX should consider reducing some of the listing fees that it receives. And consider other sources of revenue. It is a very bad idea to remove quarterly reporting, regardless of their market capitalisation.
SGX should consult their peers at BCA on whether it is a good idea to remove audits because of the costs to contractors and building owners.
3. The only time I will accept half-yearly reporting -- if it isn't already -- will be when I trust the company's management. Companies that wish to do away with quarterly reporting should put it on their AGM resolution -- prior to SGX's approval-in-principle -- and be allowed only if a majority of the minority shareholders vote for it. Companies that want the benefit of lower compliance cost should have to earn it, and not expect it to be given.
https://www.businesstimes.com.sg/compani...too-narrow
Some questions/comments:
1. With regards to a 'risk-based' approach of deciding who is subject to quarterly reporting, and who isn't, how is risk defined? And who decides what is risky?
2. If companies are threatening to delist, or not IPO, because of "high compliance costs," and if it is in the interest of SGX to maintain a healthy public capital market, maybe SGX should consider reducing some of the listing fees that it receives. And consider other sources of revenue. It is a very bad idea to remove quarterly reporting, regardless of their market capitalisation.
SGX should consult their peers at BCA on whether it is a good idea to remove audits because of the costs to contractors and building owners.
3. The only time I will accept half-yearly reporting -- if it isn't already -- will be when I trust the company's management. Companies that wish to do away with quarterly reporting should put it on their AGM resolution -- prior to SGX's approval-in-principle -- and be allowed only if a majority of the minority shareholders vote for it. Companies that want the benefit of lower compliance cost should have to earn it, and not expect it to be given.