Entire Section

  • Independent board committee (20.38-20.41)

    • 20.38

      The independent board committee must, taking into account the recommendation of an independent financial adviser, advise the listed issuer's shareholders:

      (1) whether the terms of the connected transaction are fair and reasonable;
      (2) whether the connected transaction is on normal commercial terms or better and in the ordinary and usual course of business of the listed issuer's group;
      (3) whether the connected transaction is in the interests of the listed issuer and its shareholders as a whole; and
      (4) how to vote on the connected transaction.

    • 20.39

      The independent board committee must consist only of independent non-executive directors who do not have a material interest in the transaction.

    • 20.40

      If all the independent non-executive directors have a material interest in the transaction, an independent board committee will not be formed.

    • 20.41

      If an independent board committee is formed, the circular must include a letter from the independent board committee containing its opinion on the matters in rule 20.38 and its recommendation.