PHILIPPINES: Proposed Amendments to the Voluntary Delisting Rules

Thursday December 5 2019

On 03^rd December 2019,  the Philippine Stock Exchange announced that it has proposed amendments to the voluntary delisting rules, following the receipt of complaint’s from the market that minority stockholders are essentially forced to accept a company’s decision to delist and the tender offer price offered by the listed company or delisting proponent, under the threat of being left with shares that have no secondary market.

Required Approvals:

To enable minority stockholders to participate in the delisting decision-making process, PSE proposes to incorporate the following into the Voluntary Delisting Rules, in addition to the existing conditions for approval:

1. Delisting must be approved by all independent directors of the company;
2. Delisting must be approved by stockholders by owning at least 75% of the total outstanding and listed shares of the company either in a duly convened meeting or by written assent; and
3. The number of votes case against the delisting proposal is not more than 10% of the total outstanding and listed shares.

Click on the above link for further information.