Bursa AGM Shareholders question Bursa’s efficiency at long heated meeting

by **Cals** Thu 27 Mar 2014, 18:36

Bursa AGM Shareholders question Bursa’s efficiency at long heated meeting

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Thursday, 27 March 2014 17:18

KUALA LUMPUR (Mar 27): Bursa Malaysia Bhd’s annual general meeting (AGM) today was longer than expected, with shareholders incessantly raising questions on the operational efficiency of the stock exchange and voicing dissatisfaction on various issues.

The meeting, punctuated by some heated questionings, began at 10 am and ended at 1.20 pm today.

During the three-hour long AGM, Bursa Chairman and Non-Executive Director Tun Mohamed Dzaiddin bin Haji Abdullah was said to have cut short some issues raised by shareholders, which prompted some infuriated shareholders to storm out.

“How can the chairman deny us the opportunity to raise important issues?” a shareholder complained, while talking to theedgemalaysia.com.

The management of the stock exchange – including CEO Datuk Tajuddin Atan – declined to talk to reporters after the annual general meeting (AGM).

But a shareholder told theedgemalaysia.com that many shareholders had raised pointed questions and made sharp comments at the AGM.

One was that ‘Bursa is not quick enough in response to unusual market activity (UMA)’.

“For instance, we see some shares surging all of a sudden without any apparent reason. Is there insider trading involved?” the shareholder said.

“We also want to know what Bursa will do and how to curb such activity,” the shareholder added, noting Bursa’s response was that it would investigate any ‘unhealthy activity’.

Another shareholder piped in: “The trading practices are not fair to investors. We want it to be simpler and fairer for all investors.”

Shareholders were also unhappy over ‘high brokerage fee’ to buy, sell and transfer shares. The minimum brokerage fee to buy or sell shares is RM40, while to transfer shares it cost RM10.

“It is painful for retail investors like us when we trade in small volume,” a shareholder said.

Despite reports that Bursa’s CEO might not have his contract extended, Tajuddin did not make any announcement over his future.

As a result, some shareholders opined that Tajuddin was likely to see his contract renewed.

In recent weeks, there were reports that Tajuddin’s contract, due to expire at the end of this month, would not be renewed due to the many complaints made by industry players against the stock exchange.

Earlier before the AGM, Bursa Malaysia Derivatives Bhd’s Senior Executive Vice President Jeffrey Tan Seng Hui told this writer, Tajuddin would likely be offered a new contract to stay on as Bursa CEO.