KINIBIZ Keeping order in the jungle you rule is essential. If Tiger doesn’t bite off the heads of the more rebellious kijangs from time to time, the more timid ones might be getting ideas, mind you.

In that sense Tiger understands the Securities Commission (SC)’s move to reinforce its listing rules for special purpose acquisition companies (SPACs) with commendable amendments and additions.

NONE As a quick example, the new practice note in the guidelines specifically forbids using a SPAC’s initial public offering (IPO) proceeds to pay the management team’s remunerations, which Tiger feels is only fair - you should only get your pay when you deliver the goods.

Alas, Tiger also feels there are things that need further clarity too. One clause in the new practice note that immediately caught Tiger’s eye was the requirement for a SPAC management team to have a “positive corporate governance and regulatory compliance history”.

How is that measured? No doubt “positive” can be further defined and ascertained using a list of guiding criteria, but the point is that it was not defined further in the practice note.

Similarly, the practice note says an applying SPAC must make every effort to place more than the regulatory 90 percent of the IPO proceeds in a trust account - a potential issue is the subjectiveness of that condition renders it somewhat meaningless.

For the complete article please go to KiniBiz .

This article was written by Khairie Hisyam.