In Malaysia, the share registry landscape is undergoing a significant transformation as technology reshapes traditional processes. One of the key innovations driving this change is the share registry portal, an advanced online tool that streamlines shareholder services and regulatory compliance.

These portals not only enhance operational efficiency but also play a critical role in improving shareholder engagement. By integrating technology into share registry services, Malaysian companies can reduce administrative burdens and ensure transparency and compliance with local regulations, making share registry portals essential to their success.

The share registry market in Malaysia is evolving rapidly, driven by an increasing number of IPO listings and demand for advanced technological integration to meet the changing needs of modern investors. Key innovations like share registry portals, shareholder management systems and online meeting services are reshaping the industry.

Alex Chew, Director of Share Registrar Services Asia at BoardRoom Malaysia says the COVID-19 pandemic pushed many traditionally brick-and-mortar businesses to adopt digital solutions to remain competitive.

“To stay ahead, you’ve got to embrace technology to drive the business,” he says, emphasising that the shift from conventional paper-based services to online mediums is now essential. “Realistically, a fully digital adoption may take time but the journey to engage and adopt technology solutions is unavoidable to remain relevant,” he added.

As the number of share registry providers increases, the focus on regulatory compliance and operational efficiency becomes paramount. Richard Lee, Director of Client Management, Share Registrar Services Asia at BoardRoom Malaysia, stresses the importance of up-to-date shareholder solutions in navigating the ever-changing regulatory landscape. Technology can help by providing a clear audit trail, improving communication and ensuring accurate record-keeping.

“Share registry solutions are crucial in supporting operational and compliance efficiency,” Richard says.

The move towards paperless transactions is a testament to this evolution. It simplifies processes like the Dividend Reinvestment Plan (DRP), which can now be submitted electronically rather than through cumbersome paper forms.

From a corporate governance perspective, implementing a standard operating procedure (SOP) is vital for ensuring compliance and protecting shareholder interests, Alex explains.

“If you have a policy on SOP in place, whether in manual or digital mode, you are able to comply from the get-go because everything is in electronic mode,” Alex says. This shift not only aids in maintaining accurate records and transparent communication but also aligns with the stringent regulations set forth by the Securities Commission Malaysia (SC) and Bursa Malaysia, reinforcing the need for efficient and compliant shareholder management software in the industry.

The integration of technology significantly enhances shareholder engagement and operational efficiency. Tech-enabled share registry portals, such as the BoardRoom Smart Investor Portal (BSIP), provide 24/7 access to vital services, allowing investors to engage with their share registrars anytime, anywhere.

As Alex says, “Online mediums like our online portal have become a crucial and essential channel for the public or an investor to reach our share registrar services electronically.

“The best thing about going online is it’s available around the clock. It’s a service that is available 24/7 versus the typical over-the-counter service, which is only available on a weekday during business hours.”

This shift away from traditional manual services has streamlined processes, eliminating the need for in-person visits to submit forms or request hard copies. BoardRoom’s online platform allows shareholders to engage more efficiently with the share registry, providing instant notifications and system mailers regarding important updates. This digital approach improves user experience and aligns with modern shareholders’ expectations for seamless technology in their interactions.

Moreover, shareholder management software enhances flexibility and convenience for users. Shareholders can now manage their investments smoothly across multiple devices, ensuring they remain informed and engaged.

As the share registry market in Malaysia continues to evolve, the increasing adoption of technology is set to play a critical role in shaping the future of shareholder services. With the potential for artificial intelligence to enhance these systems further, companies that embrace these advancements will likely enjoy improved shareholder satisfaction and loyalty, solidifying their position in a competitive landscape.

BoardRoom Smart Investor Portal (BSIP) offers a significant competitive advantage. Its advanced features and functionality increase shareholder engagement and ensure seamless execution of corporate actions.

Key features of BoardRoom Smart Investor Portal (BSIP)

BoardRoom’s state-of-the-art shareholder management software exemplifies how tech-enabled solutions can transform share registry services. Focusing on enhancing efficiency and reducing costs, these advanced tools position BoardRoom as a market leader.

Recently, some of Boardroom’s clients BoardRoom client reported saving up to 30-40% on mailing costs by using BoardRoom’s electronic communications.

Traditionally, shareholders received dividends by cheque with a copy of the tax voucher, but with the implementation of e-payment more than 15 years ago, a good majority shareholders now received dividend paid by electronic crediting to their bank account directly. Most of the tax vouchers are still being sent separately via postal mail. Now, with the introduction of BoardRoom’s e-Notice system, the tax vouchers are delivered electronically. This streamlined approach accelerates communication, reduces reliance on paper usage, supports sustainability initiatives, and lowers costs.

An Initial Public Offering (IPO) marks a significant milestone in a company’s journey, allowing it to transition from private ownership to a publicly traded entity. Malaysia stands out as a compelling listing destination for companies considering an IPO. With a robust regulatory framework, diverse investor community, and vibrant capital market ecosystem, Malaysia offers a conducive environment for companies to unlock their growth potential and thrive in the competitive business landscape.

Before proceeding with an IPO in Malaysia, it’s essential to consider the following:

Companies should anticipate various fees associated with the IPO application process, including advisory fees for professionals such as investment banks and solicitors, underwriting fees if the company uses the services of an underwriter to facilitate and manage the IPO, as well as expenses related to regulatory filings and compliance.

Understanding the timeline for a typical IPO in Malaysia is crucial for effective planning. While timelines may vary depending on various factors, including regulatory approvals and market conditions, companies should expect the process to take several months from initial planning to listing day.

When it comes to navigating the intricate process of IPO application in Malaysia, BoardRoom emerges as a trusted partner. With more than 50 years of experience and expertise in corporate services, BoardRoom offers comprehensive support and guidance tailored to meet the unique needs of companies venturing into the IPO landscape. From ensuring regulatory compliance to facilitating due diligence and prospectus development, our team of seasoned professionals is dedicated to orchestrating a seamless IPO journey.

As a full-suite share registry provider, we also provide services such as corporate action services, share registry maintenance and coordination, AGM meeting and scrutineering services , corporate secretarial and corporate governance advisory services.

Contact us today to help your business navigate the complexities of the IPO application process and increase the chance of successfully listing on Bursa Malaysia.

The Annual General Meeting (AGM) is an annual meeting where a company’s shareholders and board of directors come together. It plays an important part in facilitating effective corporate governance in Malaysia, acting as a crucial forum for direct dialogue between shareholders and the management team. With AGMs, companies can enable transparent decision-making and strategic direction setting and solidify investor confidence. In this guide, we explore the regulatory requirements, preparation processes, best practices for conducting AGMs in Malaysia, and how to ensure compliance and foster stakeholder engagement.

Once the preparation stage is completed, the Annual General Meeting (AGM) will be conducted in compliance with a set of formal procedures and protocols, which include:

Shareholder participation is a key element in any AGM in Malaysia, as it enables stakeholders to have a meaningful impact on the company’s operation and development.

Their participation usually includes the following activities and rights:

Voting allows shareholders to exercise their rights and influence the company’s decisions. Shareholders can vote in person or via proxy for each resolution. This could be done via a show of hands or electronic voting.

Resolutions are formal decisions that shareholders vote on during the AGM, which can include the approval of financial statements, election or re-election of board members, mergers, acquisitions, or changes in the company’s constitution.

These sessions enable shareholders and the company’s board of directors to communicate directly. In particular, shareholders can raise questions, seek clarifications, and express concerns regarding the company’s operations, financial health and strategies.

In recent years, there have been numerous changes to AGMs in Malaysia. The majority of these have been propelled by simultaneous worldwide developments in technology and increased awareness of Environmental, Social, and Governance (ESG) principles.

The adoption of digital formats for has increased significantly around the world, including Malaysia. Even with physical meetings making a comeback in 2023, virtual meetings accounted for 58% of all meetings in Malaysia.

ESG topics have gained prominence in corporate governance. Shareholders increasingly demand transparency and action on issues such as climate change and sustainable business practices through resolutions at AGMs. Bursa Malaysia has also introduced the new enhanced Sustainability Reporting Framework, aimed at facilitating businesses in embracing global standards for disclosing ESG-related information. By strengthening your ESG compliance, companies can help attract investment, improve your corporate reputation and minimise your risk of penalties for non-compliance.

Bursa Malaysia has released the Best Practice Guides on AGMs, which provide a thorough framework for navigating the changing environment. These principles assist businesses in adopting international best practices, ensuring regulatory compliance, and organising productive meetings. They address useful issues, including how to improve shareholder involvement, how to employ technology for distant voting, and how to enable open dialogue about ESG issues.

BoardRoom offers comprehensive share registry services, managing more than 350 AGMs and meetings every year in Malaysia. With a strong focus on enhancing engagement, streamlining proceedings, and ensuring regulatory requirements are met, BoardRoom empowers businesses in your AGM preparation.

Contact us today to discuss your AGM needs and make your next AGM a seamless experience.

Annual general meetings (AGMs) play a pivotal role in shaping the future of public companies by encouraging informed decision-making and strategic planning. These crucial gatherings bring together key stakeholders, including board members and shareholders, to collectively steer the company’s direction. They can help your company build shareholder confidence and maintain a competitive advantage.

In addition to traditional share registrar duties, a full suite share registry services provider can offer support for various types of meetings such as AGMs, extraordinary general meetings, and special general meetings, provide companies with secure processes to protect clients’ data while also offering a wide range of polling solutions and assistance for companies navigating the complexities of IPO listings. In this article, we focus on how full suite share registry service providers can empower businesses to prepare their board members for AGMs, with the view to facilitate meaningful shareholder engagement and promote strong compliance with local regulations.

In our recent webinar, ‘2023 AGMs and EGMS – What Have We Learned’, more than 50% of respondents identified cost as a major concern when considering hybrid meetings. Many believe that hosting hybrid meetings costs twice as much due to the need for physical venues and remote setup. While rising costs and logistical expenses pose challenges, they also create opportunities for creative solutions.

One strategy is downsizing venues, prioritising quality over quantity. The key is to strike a balance between limited physical attendance and remote participation.

Here are our tips on how you can maximise cost efficiency and engagement in your hybrid meetings.