Protection of minority investors in the capital market: public enforcement and shareholders' litigation

The capital market provides investors with easy access to wider investment opportunities and provides corporations with wider financing opportunities which should encourage economic growth. The two core values that must exist for a well-functioning capital market are transparency and accountability....

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Main Author:	Mohd. Sulaiman, Aiman @ Nariman
Format:	Book Chapter
Language:	English
Published:	Cambridge University Press 2019
Subjects:	K Law (General) KPG Malaysia
Online Access:	http://irep.iium.edu.my/71883/ http://irep.iium.edu.my/71883/ http://irep.iium.edu.my/71883/1/71883_Protection%20of%20minority%20investors.pdf

id	iium-71883
recordtype	eprints
spelling	iium-718832020-01-30T06:16:06Z http://irep.iium.edu.my/71883/ Protection of minority investors in the capital market: public enforcement and shareholders' litigation Mohd. Sulaiman, Aiman @ Nariman K Law (General) KPG Malaysia The capital market provides investors with easy access to wider investment opportunities and provides corporations with wider financing opportunities which should encourage economic growth. The two core values that must exist for a well-functioning capital market are transparency and accountability. Investors’ trust is nurtured and maintained through a regulatory framework that relies primarily on disclosure of material information which is considered by investors to be relevant to their investment decisions, backed by public enforcement by regulators, by quasi-public or self-regulatory organisations and by private enforcement by investors. The disclosure frameworks operates on the basis that whenever an issuer or persons acting on its behalf publicises information about the company, either in relation to an initial public offering or post-listing or under mandatory or voluntary disclosures, the information published is not false or misleading, and there is no material omission of information .Financial misreporting or reporting failures due to disclosure of false or misleading information conveyed to, or in some instances omission of material information from, the market can undermine the integrity of the capital market. The regulatory framework therefore provides for remedies or sanctions where there has been financial misreporting or reporting failures. Malaysia's liability framework enables enforcement actions to be taken by both the regulators and investors against issuers, directors, and other relevant parties involved in the breach of the disclosure obligations. This chapter discusses the liability framework under the common law and capital market legislation in Malaysia with the aim to ascertain the extent to which substantive investor protection rules in Malaysia are enforced. It also discusses whether there are issues or challenges regarding enforcement of compensation claims by investors to recover their losses. This is juxtaposed with disclosure relating to capital raising exercises as well as a company’s periodic and continuous disclosure obligations in Malaysia. Cambridge University Press 2019 Book Chapter PeerReviewed application/pdf en http://irep.iium.edu.my/71883/1/71883_Protection%20of%20minority%20investors.pdf Mohd. Sulaiman, Aiman @ Nariman (2019) Protection of minority investors in the capital market: public enforcement and shareholders' litigation. In: Global securities litigation and enforcement. Cambridge University Press, Cambridge, United Kingdom, pp. 944-986. ISBN 9781107108608 https://www.cambridge.org/core/books/global-securities-litigation-and-enforcement/malaysia-protection-of-minority-investors-in-the-capital-market-public-enforcement-and-shareholders-litigation/D269E0D6DB63A0D7C7C7C09DF7049742
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	K Law (General) KPG Malaysia
spellingShingle	K Law (General) KPG Malaysia Mohd. Sulaiman, Aiman @ Nariman Protection of minority investors in the capital market: public enforcement and shareholders' litigation
description	The capital market provides investors with easy access to wider investment opportunities and provides corporations with wider financing opportunities which should encourage economic growth. The two core values that must exist for a well-functioning capital market are transparency and accountability. Investors’ trust is nurtured and maintained through a regulatory framework that relies primarily on disclosure of material information which is considered by investors to be relevant to their investment decisions, backed by public enforcement by regulators, by quasi-public or self-regulatory organisations and by private enforcement by investors. The disclosure frameworks operates on the basis that whenever an issuer or persons acting on its behalf publicises information about the company, either in relation to an initial public offering or post-listing or under mandatory or voluntary disclosures, the information published is not false or misleading, and there is no material omission of information .Financial misreporting or reporting failures due to disclosure of false or misleading information conveyed to, or in some instances omission of material information from, the market can undermine the integrity of the capital market. The regulatory framework therefore provides for remedies or sanctions where there has been financial misreporting or reporting failures. Malaysia's liability framework enables enforcement actions to be taken by both the regulators and investors against issuers, directors, and other relevant parties involved in the breach of the disclosure obligations. This chapter discusses the liability framework under the common law and capital market legislation in Malaysia with the aim to ascertain the extent to which substantive investor protection rules in Malaysia are enforced. It also discusses whether there are issues or challenges regarding enforcement of compensation claims by investors to recover their losses. This is juxtaposed with disclosure relating to capital raising exercises as well as a company’s periodic and continuous disclosure obligations in Malaysia.
format	Book Chapter
author	Mohd. Sulaiman, Aiman @ Nariman
author_facet	Mohd. Sulaiman, Aiman @ Nariman
author_sort	Mohd. Sulaiman, Aiman @ Nariman
title	Protection of minority investors in the capital market: public enforcement and shareholders' litigation
title_short	Protection of minority investors in the capital market: public enforcement and shareholders' litigation
title_full	Protection of minority investors in the capital market: public enforcement and shareholders' litigation
title_fullStr	Protection of minority investors in the capital market: public enforcement and shareholders' litigation
title_full_unstemmed	Protection of minority investors in the capital market: public enforcement and shareholders' litigation
title_sort	protection of minority investors in the capital market: public enforcement and shareholders' litigation
publisher	Cambridge University Press
publishDate	2019
url	http://irep.iium.edu.my/71883/ http://irep.iium.edu.my/71883/ http://irep.iium.edu.my/71883/1/71883_Protection%20of%20minority%20investors.pdf
first_indexed	2023-09-18T21:41:56Z
last_indexed	2023-09-18T21:41:56Z
_version_	1777413197421084672

Protection of minority investors in the capital market: public enforcement and shareholders' litigation

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