SINGAPORE, Oct 3 (Reuters) – Singapore will allow companies
to issue different classes of shares to help its stock exchange
to compete for new listings and the country to maintain its
competitiveness as a financial centre.
“Companies will be allowed to issue non-voting shares and
shares carrying multiple votes if their articles allow it and
subject to certain safeguards,” the Ministry of Finance said in
a statement on Wednesday.
“This will give companies greater flexibility in raising
capital, and meet different investor preferences.”
British soccer team Manchester United chose to list
its shares in New York in August after initially considering the
Singapore Exchange.
Difficulties in obtaining approval for its dual-class share
offer in Singapore was cited as a major reason for the change in
listing venue.
Singapore’s Ministry of Finance said that the changes to its
Companies Act was aimed at maintaining the city state’s
competitiveness as a business hub as well as to reduce
regulatory burden for companies and improve the corporate
governance landscape.
Other changes to the Act included provisions that will
exempt more small and medium-sized companies from performing an
audit and lower their cost of compliance.
