Wednesday, November 4, 2009

Practise Note 17 (PN 17)

Well, whenever people talk about PN17 about some stock counter, I was always wondering what is PN17? The only thing I knew is that the said counter is in some financial mess. From my reading today, I finally found out what exactly is PN17 referring to. Something interesting to share out ;)
On the pages of Bursa Malaysia Quotes, classified stocks are highlighted in 'red'. These are Practice Note 17 (PN17) companies or companies in financial distress. Criteria for a listed company to be classified as a PN17 company are as follows:-

1. Shareholders' fund is equal or less than 25% of the total issued and paid up capital of the listed company; or
2. Receivers and/or managers have been appointed to take control of at least 50% of the total assets employed of the company on a consolidated basis; or
3. Winding up of a subsidiary or associate company which makes up at least 50% of the total assets employed of the company on a consolidated basis; or
4. The auditors have expressed adverse or disclaimer opinion on the listed company's latest audited accounts; or
5. For any default in payment, the listed company must announce its inability to provide a solvency declaration through Practice Note 1/2001 or PN1; or
6. The listed company has suspended or ceased all or a major part of its operations.

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