SGX RegCo proposes rule changes to streamline company restructuring

It suggested eliminating shareholder votes on major disposals during liquidation.

Singapore Exchange Regulation (SGX RegCo) has proposed rule changes to simplify the restructuring process for SGX-listed companies under Singapore’s Insolvency, Restructuring, and Dissolution Act (IRDA) 2018.

The proposed changes will allow issuers to restructure more efficiently and reduce regulatory burdens during financial challenges and time-sensitive milestones.

Amongst the key proposals are eliminating shareholder votes on major disposals during judicial management or liquidation under IRDA, providing guidance to issuers on trading during financial distress, mandating immediate announcements during court-supervised moratoriums, and exempting financially distressed companies from quarterly financial statement disclosures under certain conditions.

“IRDA aims to smoothen and speed up the restructuring of financially distressed companies. This may increase the chances of white knight rescues and trading resumptions," said Tan Boon Gin, CEO of SGX RegCo.

"These outcomes, if they materialize, will be of more value to shareholders than years of proceedings that will further deplete distressed companies’ scarce finances,” he added.