SIDC Module 6 Capital raising and the Listing Requirements question: major shareholder of Indah Bhd

SIDC Module 6Capital raising and the Listing Requirements

Datuk Rahim, a major shareholder of Indah Bhd, is selling land to Indah and the deal needs shareholder approval. His wife holds 2% of Indah. How may they vote on the resolution?

A Datuk Rahim must abstain, but his wife may vote her own 2% holding
B Neither Datuk Rahim nor his wife may vote on the resolution
C Both may vote, provided they declare their interest at the meeting
D Datuk Rahim may vote if the independent adviser supports the deal

Show the answer and explanation

Answer: B. Neither Datuk Rahim nor his wife may vote on the resolution

Paragraph 10.08(7)(a) bars an interested related party from voting on the resolution for the related party transaction. Under paragraph 10.08(7)(b), an interested related party who is a director or major shareholder must also ensure that persons connected with him abstain. A spouse is a member of his family and therefore a person connected. His wife's holding cannot be voted, declaring an interest does not lift the bar, and a favourable independent adviser opinion does not give the interested party a vote. Source: Bursa Malaysia Securities Main Market Listing Requirements (consolidated as at 9 July 2026) para 10.08(7); Companies Act 2016 s.197 (as at October 2026).

Common mistake

Thinking that only the counterparty abstains while family members may still vote.

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Original study material mapped to the public SIDC Module 6 syllabus. Unofficial, not endorsed by SIDC or the SC. Verify figures and rules against current guidance before relying on them.