Non-Preemptive Share Issues in Asia:
Role of Regulation in Investor Protection
In this report, we review the regulations governing non-preemptive share issuance based on general mandates across four major jurisdictions in Asia (Hong Kong, Singapore, Thailand, and Malaysia). We then compare these market practices with the UK regulations of preemption and highlight the differences between the two groups. Our objective is to create awareness among investors, regulators, and company management and to draw a broad consensus on the principle of preemption. This report is part of our continued effort to raise the bar on corporate governance principles in Asia and to build trust and transparency among the various stakeholders in Asia’s capital markets.
CFA Institute - Padma Venkat, CFA; Kurt N. Schacht, JD, CFA; Robert W. Dannhauser, CFA; Tony Tan, DBA, CFA
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