Forum (2) "DRAFTING WILL-DIY"

The Speaker and the participants

1. Definition :

(a) Wikipedia: In the common law, a will or testament is a document by which a person (the testator) regulates the rights of others over his or her property or family after death. In the strictest sense, "will" is a general term, while "testament" applies only to dispositions of personal property (this distinction is seldom observed). A will is also used as the instrument in a trust.

(b) Oxford Dictionary of Law- A document by which a person (called the testaor) appoints executor to administer his estate after his death, and directs the manner in which it is to be distributed to the beneficiaries he specifies.

(c) Section 2(1) Wills Act -a declaration intended to have legal effect of the intentions of a testator with respect to his property or other matters which he desires to be carried into effect after his death and includes a testament, a codicil and an appointment by will or by writing in the nature of a will in exercise of a power and also a disposition by will or testament of the guardinship, custody and tuition of any child”.

2. Law Governing Estate In Malaysia:

(a) Wills Act
(b) Distribution Act 1958
(c) The Presumption of Survivorship Act 1950
(d) Legitimacy Act 1961
(e) Law Reform (Marriage And Divorce) Act 1976
(f) Probate And Administration Act 1959
(g) Trustees Act 1949, Trustees (Incorporation) Act 1952 and Public Trust Corporation Act 1995.
(h) etc

3. Intestate - Distribution Under the Distribution Act 1958

---Intestate Leaving ---Portion Obtained from the Estate ---

1. Spouse, no issue, no parent Spouse gets all

2. Spouse, parent/parents, no issue Spouse gets half, the parent/parents gets half

3. Issue, no spouse or parent(s) Issue gets the whole

4. Parent(s), no issue, no spouse Parent(s) gets whole

5. Spouse and issue , no parent Spouse gets 1/3, issu gets 2/3

6. Issue and parent(s), no spouse Issue gets 2/3, parent 1/3

7. Spouse, issue and parent(s) Spouse gets ¼, issue get ½, parent(s) 1/4

No spouse, issue or parent
(In Sequence on trust)

a. Brothers and sisters In equal share

b. Grandparents If more than 1, then in equal shares absolutely

c. Uncle and aunties In equal shares

d. Great grandparents In equal shares

e. Great grand uncles and

great grand aunties In equal shares

4. Legitimacy And Outcome Without A Will
- In the case of Shanmugam v Pappah [1994] 1 MLJ 144, the Plaintiff said he was the legitimate son of the deceased and the defendant said she was the legitimate wife of the deceased under Indian rites. The Court held that the plaintiff though the son of the deceased failed to prove that he was the legitimate son, the defendant not the legitimate wife, none were entitled to succeed to the estate of the deceased who died intestate.
5. Category of Estate:

(a) Movable Assets
(b) Immovable Assets
(c) Liabilities
(d) Custody/Guardianship of the Child - (Executors must be a trust corporation or not less than 2 individuals unless the Court granted otherwise - for cases where no both parents decease.)
(e) Etc excluding trust property or anything held by the testator under trust.

6. Points To Be Remembered
1. It is automatically revoked if the testator marries (section 12 of the Wills Act) except where at the time it was made the testator was expecting to marry a particular person and he intended his will to survive the act of marriage (see Oxford Dictionary of Law)
2. There is no law that requires a will be drawn up by a lawyer, or any other agency.
3. There should not be an ambiguity in the Will
4. Terminology used in Wills and Court
(a) A bequest is a gift in the form of personal property.
(b) A devise is special gift of real property in a will.
(c) A devisee is a person who receives a devise.
(d) A legacy is a gift. Historically, a legacy has referred to either a gift of real property or personal property.
(e) A legatee is a person who receives a legacy.
(f) An executor is the person to administer the estate, generally subject to the supervision of the probate court, in accordance with the testator's wishes in the will. In most cases, the testator will nominate an executor in the will.

7. Requirements for the creation of a will
1. In history, the shortest known legal will made by one Bimla Rishi of Delhi, India. His will which was dated on February 9, 1995 and written in Hindi, translating as "all to son" and consisting of just four characters. Another one was by Karl Tausch, his will dated January 19, 1967 is in Czechcoslovakia and which consists of the phrase vše ženě "all to wife".
2. Any person over the age of majority (18 years old -section 4 Wills Act) can draft their own will without the aid of an attorney. Every will must contain the following:
(a) The testator must clearly identify himself as the maker of the will, and that a will is being made. this is commonly called "publication" of the will, and is typically satisfied by the words "last will and testament" on the face of the document.
(b) The testator must declare that he revokes all previously-made wills and codicils. Otherwise, a subsequently-made will revokes earlier wills.
(c) The testator must demonstrate that he has the capacity to dispose of his property, and does so freely and willingly.
(d) The testator must sign and date the will, usually in the presence of at least two disinterested witnesses (persons who are not beneficiaries).In the USA, Pennsylvania does not require the signing of the will to be witnessed
(e) The testator's signature must be placed at the foot or end of the will (Section 5 -Wills Act). If this is not observed, any text following the signature will be ignored, or the entire will may be invalidated if what comes after the signature is so material that ignoring it would defeat the testator's intentions.

3. Forms and Clauses in a Will

(a) There is no specific form for a will but most wills would have the following clauses:-
(i) Commencement date
(ii) Declaration to revoke previous wills and testamentary instruments
(iii) appointment of executors and trustees
(iv) Executor’s powers and rights to the estate, ie to convert the assets into cash and distributes the same among the beneficiaries, ie to confer upon the executor the rights which are not provided for by statute including power to carry on his business after his death, to invest in investments beyond those authorized by statute and to accumulate income and postpone distribution within the perpetuity period.

7A Witnesses
- Must be 2 person who have attained the age of majority and of sound mind and must be a disinterested witness.
- There is a prohibition against beneficiaries of a will signing as witness but the gift to such attesting beneficiary or to his or her spouse will be nullified.
- The spouses of beneficiaries also fall within this prohibition.
- The signature of the testator must be at the foot of the will, as any writing appearing below the signature will not be valid.
7B Appointment, Qualification and Duties of the Executor In Will
- Above 21 years old so that the deceased’s assts vested in him and transact the deceased’s affair and not a bankrupt
- no special qualification- usually family member/lawyer/close friend.
- Failing to Appoint Executor in Will is not fatal and a Letter of Administrator can be granted (Section 16 Probate And Administration Act 1959).
- Duty of the Executor is to distribute the estate amongst the different beneficiaries but all expenses/liabilities will fall on the estate in which the Executor is entitled to be reimbursed.
- In Malaysia, extra powers are given to the trustee/executor/administrator under the Trustees Act 1949, Trustees (Incorporation) Act 1952 and Public Trust Corporation Act 1995.
7C Revocation of Wills (Section 14 of the Wills Act)
1. A will may also be revoked by the execution of a new will or executing another will.
2. By some writing declaring an intention to revoke the will and executed in the same manner as a will.
3. By burning or destroying the will by the testator or by someone in his presence and by his intention, with the intention of revoking the will.
4. In England and Malaysia, marriage will automatically revoke a will as it is presumed that upon marriage, a testator will want to review the will.
5. Divorce, conversely, will not revoke a will, but will have the effect that the former spouse is treated as if they had died before the testator and so will not benefit.
6. Where a will has been accidentally destroyed, on evidence that this is the case, a copy will or draft will may be admitted to probate.
7D Reviving A Will
- a will revoked can only be revived by reexecution and showing an intention to revive the same.
7E Strange Wills.
- Charles Vance Millar's will was notorious for offering the bulk of his estate to the Toronto woman who had the greatest number of children in the ten years after his death (the Great Stork Derby). Attempts to invalidate it by his would-be heirs were unsuccessful, and the bulk of Millar's fortune eventually went to four women. Another famous case, Estate of Kidd involved a will found on a deceased Arizona prospector who left his entire $250,000 estate "for research or some scientific proof of a soul of the human body which leaves at death. I think in time there can be a photograph of a soul leaving the human at death."
7F Advantage of testacy

No.
Subject
Testacy
Intestacy
1.
Vesting of deceased’s estate
Vest in the executor upon death enabling the executor to handle deceased’s affairs subject to certain limitation and production of probate if and when required

X vest in the administrators until after letter of administration have been obtained.
2.
Right to carry on with deceased’s affairs
Executor have such rights subject to the validations of their actions by extraction of probate and provision of the will

No such right, administrators duty is to call in the assets and distribute
3.
Right to choose one’s beneficiaries and their shares

Testators has a free hand subject only to leaving reasonable provision for dependants
Succession to estate is determined by the provisions of the laws on intestate succession
4.
Sureties to the administration of the estate
Generally in Malaysia, it is not required
Sureties required to the gross value of the estate. Consequently, time, cost and delay involved in extracting grant
5.
Preservation of family wealth
A testator can stipulate that part or the whole of the family wealth is to be preserved subject to the rule against perpetuities and accumulations, for a period of time, this would ensure that family wealth is not squandered by heirs

There is no such saving of wealth as distribution of the estate has to take place soon after probate and estate duty formalities are completed.
6.
Guardianship of infants
A will can provide for guardians for infant beneficiaries so that reliable person who are competent to care for the infants can be provided
There is no certainty as to who will be the guardian if both parents have passed away. Sometimes there may be disputes as to who is the most suitable person to be the guardian

7.
Identify of Assets
A will can assist the executors and beneficiaries to identify the assets of the testator and easier to distribute the same
There is no easy way for the administrator or beneficiaries to locate the assets of the deceased and any unclaimed land or money in bank may be taken over the Government.

8. Process of Application For Grant of Probate/ Letter of Administration
1. After the testator has died, a probate or letter of administration (pending the location of lost will) proceeding may be initiated to allow the appointment of Executors or Administrators. In Malaysia, amount below RM600,000.00 will goes to the Land Office (the 2007 amendment of the Small Estates (Distribution) Act 1955 which has yet to be in force will raise the amount to RM2 million.
* No actions can be taken prior to the obtain of the sealed Grant of Probate/ Letter of Administration or actions will be deemed to be without authority.
2. In England and Malaysia, a will may disinherit a spouse, but close relations (especially those with proof of incapacity or unsound mind) excluded from a will (including but not limited to spouses) may apply to the court for provision to be made for them at the court's discretion.
3. A will may not include a requirement that an heir commit an illegal, immoral, or other act against public policy as a condition of receipt. In community property jurisdictions, a will cannot be used to disinherit a surviving spouse, who is entitled to at least a portion of the testator's estate.
9. Restriction on Grant
There shall not be more than 4 persons appointed to be executor in regard to the same property (Section 4 (1) Probate and Administration Act 1959)

10. Case Sharing
(a) In the case of Lee Ing Chin & Ors v. Gan Yook Chin & Anor [2003] 2 CLJ 19, Gopal Sri Ram JCA held that :
“ It is settled law where the validity of a will is challenged, the burden of proving testamentary capacity and due execution lies on the propounder of the will as does the burden of dispelling any suspicious circumstances that may surround the making of the will. However, the onus of establishing any extraneous vitiating element such as undue influence, fraud or forgery lies on those who challenge the will.
We consider it to be well established general guide to the judicial appreciation of handwriting evidence that where there is a sharp conflict between the direct testimony of a disinterested witness on the one side and that of a handwriting expert on the other as to the genuineness of the execution of a document, then it is a safe course for a court to prefer the direct evidence.”
(b) In the case of Tay Seck Loong & Ors V. Teh Chor Chen & Ors [2005] 8 CLJ 686, Low Hop Bing J held:
“ The object of interpreting a will is to give effect to the intention of the testator that is expressed in the words of the will and such words are to be read in the light of the circumstances in which the will was made (Hsu Yik Chai v. Hsu Yaw Tang & Anor. [1983] CLJ 170 (Rep) ;[1983] 1 CLJ 19; [1982] 2 MLJ 227 at p. 230 (FC) per Lee Hun Hoe CJ (Borneo) (as he then was)”
(c) In the case of How Yew Hock (Sebagai Wasi Untuk Yee Sow Thoo @ Chor Siew Tho (P)) V. Lembaga Kumpulan Wang Simpanan Pekerja [CIVIL APPEAL NO. 02-372 OF 1994], the Federal Court held:
“Although the nomination had certain testamentary characteristics, and not
least that of being ambulatory, they were insufficient to make the paper
on which it it is written a testamentary paper. The nomination not being
a testamentary document, it did not have to satisfy the requirements of
the Wills Act 1959.”



Reference

(a) Wills Act
(b) Distribution Act 1958
(c) The Presumption of Survivorship Act 1950
(d) Legitimacy Act 1961
(e) Law Reform (Marriage And Divorce) Act 1976
(f) Probate And Administration Act 1959
(g) http://en.wikipedia.org/wiki/Will_(law)
(h) Family Law In Malaysia - Mimi Kamariah Majid
(i) Current Law Journal
(j) Malaysia Law Journal
(k) Trustees Act 1949, Trustees (Incorporation) Act 1952 and Public Trust Corporation Act 1995.

Forum (2) "DRAFTING WILL-DIY"

DATE：28 June 2008

TIME：8：00PM - 10：30PM

VENUE：Puchong, Selangor

MODERATOR：TAN CHUN MING

简 单 粗 暴 的 社 会

蒲 种 又 发 生 了一 起 抢 劫 案，而 以 往 不 一 样 的 是，这 是 一 宗 劫 走 提 款 机 的 案 件。一 辆 神 手 于 清 晨 五 点 半 在 位 于 蒲 种 -旧 巴 生 路 的 某 一 间 油 站 撞 入 油 站 店 里 并 劫 走了 一 架 提 款 机。 类 似 的 提 款 机 抢 劫 案 件 中，近 年 发 生 了 数 宗，唯 这 也 是 最 近 数 宗 企 图 劫 走 提 款 机 的 尝 试 中 第 一 次 成 功 的 把 整 架 提 款 机 劫 走。前 几 次 尝 试 中，劫 匪 不 仅 拖 不 走 提 款 机，甚 至还 把 干 案 用 的 神 手 卡 在 建 筑 物 里 ，偷 鸡 不 成 反 蚀 把 米。 一 架 提 款 机 重 量 达 数 百公 斤 ，虽 然 比 存 支 票 机 重 数 倍 ， 唯 这 次 还 是 难 逃 劫 匪 的 魔 掌，被 神 手 给 载 走了。二 十 一 世 纪 的 马 来 西 亚 似 乎 随 着 高 通 胀 的 时 代 来 临 而 变 得 简 单 而 粗 暴 。 若 思 想 单 纯 的 以 为 能 轻 易劫 走 提 款 机 就 能 如 意 的 取 得 里 面 的 款 项 远 走 高 飞 ，那 也 未 免 太 妙 想 天 开 了。 一 架 提 款 机 若 能 轻 易 的 被 解 剖，未 免 把 高 科 技 的 仪 器 给 看 小 了。 凭 着 蒲 种 -旧 巴 生 路 的 七 点 后 交 通 拥 挤 的 情 况 与 一 辆 神 手 的 设 计 并 不 能 带 着 一 架 数 百公 斤 重 的 提 款 机 走远 程 路 的 设 想 ， 该 神 手 估 计 不 会 被 移 去 远 距 离 。 而 有 足 够 的 烧 焊仪 器去 解 剖 该 提 款 机 的 又 只 局 限 在 工 业 区 范 围 。警 察 若 能 与 该 地 居 民 合 作， 用 心 破 案 并 留 意 蛛 丝 马 迹，应 该 能 轻 易 寻 到 该 辆 神 手。 然 而，回 顾 最 近 的 国 内 犯 罪 率 与 警 察 的 办 案 态 度，如 在 蕉 赖 进 行 警 察 之 友 推 介 礼 时，蕉 赖 国 会 议 员 陈 国 伟 与 该 区 居 民企 图 与 警 方 有 对 话 会 不 果 的 例 子 中 ，实 在 不 容 人 民对 提 款 机 抢 劫 案 的 破 案 感 到 乐 观。 可 悲 的 马 来 西 亚 在 现 金 贬 值 的 高 通 膨 下 ，劫 匪 除 了 抢 银 行 和 金 店 的 高 风 险 但 是 高 回 酬劫 案 外 ，抢 提 款 机 似 乎 变 成 了 他 们 的 另 类 低 风 险 、高 回 酬的 犯 罪 恶 行。毕 竟 抢 提 款 机 不 需 冒 生 命 危 险。然 而 这 种 以 暴 力 和 犯 法 的 途 径 企 图 赚 取 不 义 之 财 的 行 动，我 们 必 须 加 以 谴 责，并 捍 卫 社 会 的 安全 与 伦 理。 从 这 起 事 件 中，我 们 见 证 了 在 通 膨 高 压 力 下，我 们 平 民 百 姓 除 了 要面 对 填 饱 家 人 肚 皮 的 焦 虑 外，还 需 面 对 日 益 猖 獗 的 犯 罪 活 动。如 此 缺 乏 安 全 感 的 社 会，我 们 国 民的 未 来 不 堪设 想。

论坛(一) 主二板合并

首相阿都拉于2008年3月25日，在<2008年投资大马>大会上宣布四项新措施:
1) 精简大马股票交易所架构: a) 主二板合并 b) 自动报价市场(MESDAQ) 进行革新 2) 推行造市商(MARKET MAKER) 制度 3) 开放债券市场的批准架构 4) 政府允许建立第三个信贷评估机构 (CREDIT RATING AGENCY)
大马股市各板现有上市规定

最低缴足资本(PAID UP CAPITAL)
盈利纪录
主板
6千万令吉
5年
二板
4千万令吉
3年
自动报价市场
200万至2千万令吉
已经营运至3年
议题焦点: 首相宣布推出的”统一板” ，主板和二板股合并，市场人士看法好坏参半。二板从此和主板二合一，出现你中有我，我中有你的局面，短期内将拖累马股整体评级，但此为全球交易所的精简化趋势，长期影响有视监管当局如何规划，执行和监管。市场非议合并措施开倒车，从今年注重的流通量转为资本规模，但好处是上市门槛降低，同时，不符上市条规的公司也更快出局。
正面的说法如下:
1.合并措施对机构投资影响中和，长期能让基金经理更弹性投资，在中小资本和成长型公司有更多选择。重要的是二板公司的素质已比过去改善，归功交易所近年大力整顿，执行除牌令。
2.部分资产管理或信托基金公司或调整现有投资策略。 (A)目前大部分业者，硬性规定只投资主板，不投资二板和MESDAQ股。 (B)基金经理是务实的，追求公司的盈利表现和成长潜能；只要能为投资组合带来回酬，主二板公司不是问题。 (C)蓝筹股(BLUE CHIP) 特点: 业绩保证/成长缓慢 (D)二三线股特点: 成长强劲/其中有长期受忽略的遗珠股
3. 统一板将以质为重，去芜存精；上市公司多寡成次要。(通过严格监管，上市条规和奖励，提升上市公司素质，有助吸引投资者) 4.一般相信统一板指数或进行调整；包括100只综指成分股从新洗牌，纳入高流通量二板和MESDAQ股，同时淘汰流通量不理想的主板股；这才能贴切反应合并后的内涵。 5.其他可能性包括新指数: a)或扩大成分股数目 b)或根据主板，二板和MESDAQ公司数目(或资本规模)比例，重新区分和制定。 负面的说法如下: 1.二板和MESDAQ 合并概念更实际。原因是二板和MESDAQ共同点不少: a) 个股基本面因素欠佳 b) 股价波动强烈，但无法反应实际估值 c) 流动量不足 d)企业和市场消息匮乏 2.MESDAQ上市条规日趋严格，已乖离当初初创时协助创业公司集资的宗旨，和二板合并更实际。 3.二板股业绩缺乏惊喜，勉强主二板合并，不伦不类。(虽然主板股不乏害群之马，但整体表现仍比二板股高出几个等级) 4.散户面对选股不便，特别是听取市场消息，不作功课者。(基金经理有研究部门支援，合并后选股没问题。 5.锁定指数的基金经理初期面对不便，一些锁定综合指数的基金，或需从新调整投资组合，惟影响程度得有视统一板的新指数组合而定。 附加议题:
自动报价市场(MESDAQ)进行革新，使相对规模较小的公司可在成立后的较早阶段进入股市。 落实赞助商机制，长期影响正面: a)当局或规定有关公司背后的创投资金长期投资，并确保有关公司业务的成长潜能和良好的营运模式。 b)赞助商机制或扩大MESDAQ股种类，不再局限于科技类股，只要营运模式健康/成长展望良好。

资料来源： 1。 星洲日报 2。 THE STAR BIZWEEK 3。 MALAYSIA FINANCE BLOG SPOT

论坛(一) 主二板合并
日期: 31/05/2008
时间: 8.00 pm - 10.30pm
地点: 浦种,雪兰莪(Puchong, Selangor)
主持人 : 罗玉忠
纪录人 : 陈俊铭

Forum (1) "THE MERGING OF MAIN BOARD AND SECOND BOARD OF BURSA MALAYSIA"

PRIME MINISTER ABDULLAH HAS ON 25 FEBRUARY 2008，ON THE CONFERENCE ANNOUNCED FOUR NEW MEASURES:

1) SIMPLIFY THE STRUCTURE OF MALAYSIA SHARE EXCHANGE MARKET:

a) THE MERGING OF MAIN BOARD AND SECOND BOARD

b) CHANGING MESDAQ

2) PROMOTE MARKET MAKER SYSTEM

3) OPEN THE BOND MARKET'S APPROVAL STRUCTUR

4) THE GOVERNMENT APPROVED A THIRD CREDIT RATING AGENCY

THE CURRENT LISTING REQUIREMENT IN BURSA MALAYSIA

	PAID UP CAPITAL	PROFIT RECORD
MAIN BOARD	60 MILLION	5 YEARS
SECOND BOARD	40 MILLION	3 YEARS
MESDAQ	2 MILLION TO 20 MILLION	OPERATED FOR 3 YEARS

TOPIC BACKGROUND:

THE PRIME MINISTER ANNOUNCED A MERGED BOARD， THE MERGING OF THE MAIN BOARD AND SECOND BOARD。 THE MARKET OPINION IS DIVIDED。

THE MERGING OF SECOND BOARD AND MAIN BOARD CREATED A SENARIO THAT HAVE A MIXTURE OF THE BOARD， IN SHORT TERM IT WILL AFFECT THE OVERALL EVALUATION OF MALAYSIA SHARE MARKET， BUT THIS IS THE TREND OF GLOBAL STOCK EXCHANGE MARKET， IN THE LONG RUN， IT DEPENDS ON THE SUPERVISING AUTHORITIES ’ PLANNING， EXECUTION AND MONITORING。

MARKET ARE SAYING THAT THE MERGING IS A BACKWARD MEASURES， FROM THIS YEAR， THE FOCUS ON THE LIQUIDITY TO CAPITAL FORMATION， BUT THE GOOD SIDE OF IT IS THAT IT LOWER THE LISTING REQUIREMENTS BUT AT THE SAME TIME， THE COMPANIES THAT DON ‘T FULFILL THE LISTING REQUIREMENTS WILL BE KICK OUT EVEN FASTER。

THE GOOD	THE BAD
1。MERGING MEASURE WILL MODERATELY AFFECT THE INSTITUTIONAL INVESTMENT， IN LONG TERM， IT WILL LET FUND MANGERS TO BE MORE FLEXIBLE IN INVESTING， HAVING MORE CHOICES ON MEDIUM AND SMALL CAPITAL TO DEVELOPING COMPANY -THE SECOND BOARD ’S QUALITY IS BETTER THAN PREVIOUSLY， BASED ON THE BURSA ‘ RESTRUCTURE AND EXECUTING THE DELISTING。	1。SECOND BOARD AND MESDAQ ’S MERGING CONCEPT IS MORE PRACTICAL。REASON BEING MAIN BOARD AND MESDAQ HAS COMMON POINT: a) INDIVIDUAL SHARE ‘S FACE VALUE ARE LESS ATTRACTIVE b) MARKET VALUE VARIES RAPIDLY BUT UNABLE TO REFLECT THE ACTUAL VALUE。 c) LACK OF LIQUIDITY d) LACK OF ENTERPRISE AND MARKET NEWS
2。A PORTION OF ESTATE MANAGEMENT OR TRUST FUND COMPANIES MAY ADJUST THE CURRENT INVESTMENT STRATEGIES。 (A) CURRENTLY MOST OPERATORS FIXED RULE TO INVEST ONLY ON MAIN BOARD NOT ON SECOND BOARD AND MESDAQ SHARES。 (B) THE FUND MANAGERS ARE PRACTICAL， THEIR AIMS ARE FOR THE COMPANIES ’ PROFIT THE POTENTIAL ON GROWTH， AS LONG AS THE COMBINATION OF INVESTMENT BRING PROFITS， MAIN BOARD OR SECOND BOARD DOESN ‘T MATTER。 (C) BLUE CHIP : RESULT GUARANTEE/ SLOW IN GROWTH (D) 2ND AND 3RD LINE SHARES ’ POINT: STRONG GROWTH /THERE MAY BE GOOD SHARES WHICH WERE OVERLOOKED FOR A LONG TIME	2。MESDAQ LISTING REQUIREMENT IS GETTING STRICTER BY THE DAYS， DISTANCE FROM THE ORIGINAL GOAL TO HELP CREATIVE COMPANIES TO GATHER FUNDS， AND MERGING WITH THE SECOND BOARD IS MUCH MORE PRACTICAL。
3。THE MERGED BOARD WILL STRESS MORE ON QUALITY AND KEEPING ONLY THE GOOD SHARES; THE NUMBERS OF LISTING COMPANIES WILL NO LONGER MATTERS (BY STRICT MONITORING, LISTING REQUIREMENTS AND REWARDS, PROMOTES THE LISTING COMPANIES’ QUALITY WHICH WILL HELP TO ATTRACT INVESTORS)	3。SECOND BOARD’S OVERALL RESULT ARE BELOW EXPECTATION, MERGING MAY CAUSE THE END RESULTS TO BE UNSATISFACTORY (EVEN THOUGH THE MAIN BOARD ALSO HAS SOME BAD SHARES, BUT THE OVERALL PERFORMANCE IS STILL A LOT BETTER THAN THE SECOND BOARD )
4。MANY PEOPLE BELIEVE THAN THE SHARE PRICES MAY READJUST, INCLUDING THE 100 MAIN SHARES THAT WILL BE RESTRUCTURE, TO ACCOMMODATE THE SHARES IN THE SECOND BOARD AND MAIN BOARD SHARES, AT THE SAME TIME DELIST THE LOW LIQUIDITY MAIN BOARD SHAREHOLDES, TO REFLECT THE TRUE COLOR OF THE MERGING.	4。INDIVIDUAL SHAREHOLDERS WILL HAVE HARDTIME CHOSING SHARES TO INVEST, ESPECIALLY THOSE WHO BASED ON HEARSAY WITHOUT DOING THEIR HOMEWORKS. (FUND MANAGERS HAVE RESEARCH DEPARTMENT’S SUPPORT, CHOSING SHARES TO INVEST AFTER MERGING SHOULD NOT BE A PROBLEM
5。OTHER POSIBILITIES INCLUDES THE PRICES: a)OR EXPAND THE TYPES OF SHARES b)OR BASED ON MAIN BOARD, SECOND BOARD AND MESDAQ’S COMPANIES NUMBERS (OR CAPITAL VALUES) RATIO, TO RESTRUCTURE AND FIXED.	5。FUND MANAGERS WHO LOCKED TO THE PRICES WILL FACE PROBLEMS AT FIRST (SOME FUNDS WHCH FOCUS ON PRICE, MAY NEED TO READJUST THE INVESTMENT PACKAGE, BUT THE EFFECT OF MERGING DEPENDS ON THE NEW SHARE PRICES AFTER THE MERGE.

RELATED TOPICS

WHY MAIN BOARD AND SECOND BOARD MERGE？

- FOREIGN CAPITALIST SELDOM INVEST MUCH IN ASIA AND MALAYSIA SHARES MARKET AS ONE OF THE REASON IS THAT OUR SHARE MARKETS’ MARKET CAPITAL ARE SMALL. IN THEORY, BURSA MALAYSIA AND AN AMERICAN COMPANY -- (GENERAL ELECTRICITY) HAS SIMILAR MARKET CAPITAL ，APPROXIMATELY USD350 BILLION。

- IN MARKET CAPITAL *，BURSA MALAYSIA IS COMPARATIVELY SMALL, A HUGE AMOUNT OF CAPITAL DOWNPOUR MAY PARALYSE THE SHARE MARKET.。

- IN TERMS OF PROFITS，SMALL SHARE MARKET MAY NOT GIVE THE RETURN AS THE BIG INVESTORS WISH, AS THE LIQUIDITY OF THE SHARE MARKET ARE LOW。

- MALAYSIA CURRENTLY HAS MORE THAN ONE THOUSAND COMPANIES LISTED IN THE BURSA MALAYSIA，ITS AMOUNT ARE SIMILAR TO THE ONE IN HONG KONG SHARE MARKET, BUT THE MARKET CAPITAL OF HONG KONG SHARE MARKETS ARE 8 TIMES THE SIZE OF OURS. IN ANOTHER WORD, OUR COUNTRY HAS TOO MANY SMALL CAPITAL LISTING COMPANIES。

- IT IS THE IMPRESSION OF THE INVESTORS THAT GOOD COMPANIES WILL BE MOVED TO THE MAIN BOARD AND THAT THE LISTED COMPANIES IN THE SECOND BOARD ARE THOSE THAT IS NOT SUCCESSFUL. THE END RESULT IS LACK OF LIQUIDITY IN THE SECOND BOARD THEREBY WORSEN THE SECOND BOARD CONDITION.

THE SITUATION IN CHINA MARKET

**	TYPES OF CHINA SHARES	REGISTERED IN	VENUE OF LISTING	TRADE CURRENCY
1。	A	CHINA	CHINA	REN MIN BI
2。	B	CHINA	CHINA	USD/ HONG KONG DOLLARS
	TYPES OF HONG KONG SHARES	REGISTERED IN	VENUE OF LISTING	TRADE CURRENCY
3。	H	CHINA	HONG KONG	HONG KONG DOLLARS
4。	RED CHIP SHARES	HONG KONG	HONG KONG	HONG KONG DOLLARS
	TYPE OF OVERSEAS SHARES	REGISTERED IN	VENUE OF LISTING	TRADE CURRENCY
5。	SINGAPORE	CHINA	SINGAPORE	SINGAPORE DOLLARS
6。	AMERICA	CHINA	CHINA	USD

**

1。70% INDIVIDUAL INVESTORS, ONLY FOR CHINA LOCAL INVESTORS

AND QFII TO TRADE

2。ALLOW FOREIGN INVESTORS TO TRADE

3。LIMITED TO INTERNATIONAL FINANCIAL INSTITUTIONS TO TRADE

4。CHINA GOVERNMENT CONTROLLED 70%OF THE SHARES

THE REST ARE FOR INTERNATIONAL INVESTORS

ADDITIONAL TOPIC:

MESDAQ WILL BE REVAMP, TO ALLOW SMALLER COMPANIES TO BE LISTED MUCH EARLIER AFTER FORMATION。

- THE SPONSORSHIP MECHANISM, THE EFFECT IN THE LONG RUN IS POSITIVE.:

a) THE RELEVANT AUTHORITIES REQUIRED THAT THE RELATED COMPANIES HAVE LONG TERM CAPITAL TO INVEST, AND MAKE SURE THE RELATED COMPANIES HAVE GOOD POTENTIAL TO GROWTH AND GOOD MANAGEMENT FORMULA。

b)THE SPONSORSHIP MECHANISM MAY EXPAND THE TYPES OF MESDAQ SHARES，NO LONGER LIMITED TO TECHNOLOGY RELATED SHARES, IF THE MODE OF OPERATION ARE HEALTHY/PROSPECT OF GROWTH IS GOOD。

NOTE ：

* SMALL CAP - MARKET CAPITAL LES THAN 1 BILLION

MID-CAP - MARKET CAPITAL MORE THAN 1 BILLION, LESS

THAN 5 BILLION

LARGE-CAP- MARKET CAPITAL MORE THAN 5 BILLION

RESOURCES：

1。 SIN CHEW DAILY

2。 BIZWEEK

3。 MALAYSIA-FINANCEBLOGSPOT

Forum (1) "THE MERGING OF MAIN BOARD AND SECOND BOARD OF BURSA MALAYSIA"

DATE：31 May 2008

TIME：8：00PM - 10：30PM

VENUE：Puchong, Selangor

MODERATOR：LO YU CHONG

RECORDER：TAN CHUN MING