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Investment advice and corporate finance
Module 12Investment Management and Corporate FinanceAn investor holds 3% of the voting shares of Bursa Malaysia Berhad and agrees to buy another 2.5%. What does the CMSA require before he enters into the agreement?
Section 25(1) of the CMSA bars any person from entering into an agreement to acquire voting shares of an exchange holding company that would give him, with his existing holding and those of associates, 5% or more of the voting shares, without first obtaining the Minister's written approval. Here 3% plus 2.5% is 5.5%, so approval is needed before the agreement is made. Under s.25(2) the application goes to the SC, which passes it to the Minister with its recommendation; the SC recommends but does not approve. A 10% trigger has no basis in s.25, and an after-the-event notice does not satisfy a requirement for prior approval. Source: CMSA 2007 s.25(1), (2) (as at October 2026).
Candidates name the SC as approver because the application is lodged with it; the approving authority is the Minister.
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