Related party transaction: What is “interest”?

Equity capital markets (ECM)

For those who have the experience of decoding the definition of “related party transaction” in the Listing Requirements, the term may seem like pieces of jigsaw puzzle to be put together.

Under the Main Market Listing Requirements (“MMLR”) and ACE Market Listing Requirements (“AMLR”), “related party transaction” means a transaction entered into by the listed issuer/corporation or its subsidiaries which involves the interest, direct or indirect, of a related party.

Most of the terms used within the definition of “related party transactions” can be found within the body of the MMLR and AMLR. The term “interest”, however, is in the FAQ for Chapter 10 of the MMLR and AMLR.

“Interest” includes directorships, shareholdings (direct or deemed), commissions or such other benefits received or derived from the transaction.

#malaysiancorporatelawyer

#corporatefinance

#listingrequirements

This post was first posted on Linkedin on 24 December 2020.

Linkedin Post
Five key steps for legal due diligence

Most lawyers are good at identifying issues, but legal due diligence shouldn’t be limited to merely reviewing documents and identifying issues. Here are my five steps for conducting legal due diligence: 1. Identify the issues based on the scope of legal due diligence as agreed with the clients. 2. Provide recommendations …

Linkedin Post
Begin with the end in mind: Post-completion integration

I once worked on an M&A deal that took more than a year to complete. While the deal was not inherently complex, it dragged on due to delays in finalizing the details of the transaction agreements for reason beyond my control. As the deal involved a larger corporation acquiring a …

Lawyering
Being a Corporate Lawyer: Why I Do What I Do

After years of demanding schedule and juggling simultaneous corporate exercises which take a toll on physical and mental health, it is not surprising that some corporate lawyers experience burnout. Unlike some legal practice areas, the work of a corporate lawyer may not seem immediately impactful or “make a difference” to …