Selective Capital Reduction Exercise

We are pleased to share that our Firm had recently advised on and assisted the major shareholder in obtaining shareholders’ approval for a Proposed Selective Capital Reduction (“SCR”) pursuant to Section 116 of the Companies Act 2016. This exercise marks a significant milestone in streamlining the shareholding structure of a unlisted public company.

The SCR involved the cancellation of shares held by all the entitled shareholders (excluding major shareholder) and a corresponding capital repayment to the entitled shareholders. The proposal was approved with an overwhelming majority at the company's extraordinary general meeting. Upon completion, the SCR will result in a leaner shareholder base and set the stage for enhanced operational flexibility and long-term corporate efficiency.

We are proud to have played a role in facilitating this strategic corporate exercise and remain committed to delivering tailored legal solutions in capital market and restructuring exercises.

Our Partner, Loo Hao Han and Associate, Kuek Min Xi have acted in this matter.