Landmark decision on Pink Forms
The legal position of pink forms in an Initial Public Offering (IPO) exercise has finally been settled in a landmark decision by the pinnacle Court in Malaysia, the Federal Court. The decision affirmed the earlier decisions at the High Court and the Court of Appeal, holding that pink forms granted in an IPO exercise are merely invitations to treat and not offers capable of acceptance by the holders. This decision makes logical legal sense but some observers felt that it has changed the aged old perception that pink form in an IPO exercise is as good as securing those shares during IPO. This landmark decision has left the prerogative whether to accept each application for shares via pink form with the company and it is not only logical to do so but is also a prudent management of share allotment.
Our Partner & Head of Dispute Resolution, Employment & Industrial Relations Practice Group, Leonard Yeoh represented Malaysian Bulk Carriers Bhd.
Please click to links below for full articles.
http://biz.thestar.com.my/news/story.asp?file=/2013/4/25/business/13022371&sec=business http://www.btimes.com.my/Current_News/BTIMES/articles/20130425000709/Article/index_html http://www.kinibiz.com/story/corporate/16961/federal-court-makes-landmark-decision-on-ipos-pink-forms.html