Posted by Bruce88 > 2014-06-15 11:16 | Report Abuse

Bumi's 24% Bursa share ownership calculation is based on par-value and NOT based on market value. I doubt Gomen will remove the par-value in near future !

Posted by stockraider > 2014-06-15 18:59 | Report Abuse

Raider have this special advise to minority shareholder based on Dali's ( Raider's x colleague) posting on par value which raider has opposing view....!!

Raider think for minority shareholders should oppose the removal of par value....bcos removal of it will mean abuses by the majority loh....!!

In what circumstances will lead abuses ?

1) Placement of share.....there can do it at very high discount without capping.
2) Esos.....again they can do it at huge discount without price limit.
3) Share reinvestment account....again huge discount.

For minority shareholder....they are at the mercy of big shark with no capping. Your company may have NTA of say Rm 5.00....but then they can issue private placement share or do esos at rm 0.70 when no par value citing the share price is only Rm 0.90 loh......!!

For long term....investor we all know that share price do fluctuate & some time it is traded where undervalue. By issuing huge amount of esos & placement without price limit....it mean permanently destroying the intrinsic value of the company loh.....!!

Raider think if SC....wants to safeguard minority investor....and still want to implement no par limit....get an independent adviser to mandatory advise the issuing price of the corporate xcercise of share versus the true intrinsic value of company 1st loh.....!!

Don be conned that no par value is good loh.....!!
It is good only for the shark mah......!!

Posted by sunztzhe > 2014-06-16 07:16 | Report Abuse

Put in a mandatory condition that for any company that wants to reduce par value, it can do so but it must fulfill two MANDATORY CONDITION of PAR VALUE Reduction:
- Par Value to be reduced by the total amount of Negative Retained
Earnings ONLY.
- Dividend shall be paid IMMEDIATELY AFTER Par Value reduction and
- In the event that any company wants to reduce Par Value higher than the amount of negative retained earnings, it can do so on proviso that capital repayments are made IMMEDIATELY AFTER Par Value reduction PLUS the special dividend payment

Posted by soojinhou > 2014-06-16 10:40 | Report Abuse

Goes to show how determined is the gomen in plundering the country's resources. There are 2 studies done, one by UM, the other by think tank Asli, that shows that bumi equity participation has long surpassed the 30% mark. The latter study shows that it can be as high as 45%. Both studies publishes their methodologies, and both uses market value. In the end, the gomen conceded that their 24% figure is derived using par value. Instead of correcting its figures, the gomen continue to repeat the 24% year in year out hoping that a lie repeated enough will become the truth. Sure enough, the ball-licker Wahid ex-CEO of Maybank used the 24% again last week. So, the plundering continues in the guise of affirmative action for bumis. Par value is a fictitious account concept that doesn't have any physical meaning. I don't see Malaysia doing away with par value; without par value, BN will have one less excuse to plunder the country.