Role of MSWG in safeguarding the interest of minority shareholders interests of in

public companies in Malaysia.

As we have already got an idea on what basically is Minority Shareholder Watchdog

Group(MSWG),one might be wondering what would be the roles played by Minority
Shareholder Watchdog Group in Malaysia in safeguarding the interest of minority
shareholders in public companies in Malaysia. Undeniably, there are several significant roles
that are played by MSWG in Malaysia in order to ensure that interest of minority
shareholders of public companies are safeguarded and protected.
One of the many roles of MSWG is that it acts as an arena for collective shareholder
activism in the event that the management of a public listed company in Malaysia engage in
unethical or engaging into practices which are dubious .This works in a way that MSWG will
consistently monitor and supervise public companies in Malaysia to ensure that these
companies do not engage in any practices which are inconsistent with corporate governance
of the particular company. Hence, this guarantees that the rights of minority shareholders
would be protected has it would urge the management of the company to treat their
shareholders equally and to promote transparency in their administration.
Besides that, one of the major functions of MSWG in protecting the minority
shareholders interest in public companies is that MSWG has implemented a voting system
called the proxy voting system. This proxy voting system basically enables the minority
shareholders to have the right to vote in the company's annual shareholders meeting even
though they are not present in the meeting as MSWG would attend the meeting on their
behalf and as result, the minority shareholders interest and right would be protected as their
issues and concerns pertaining to the companys management or any other matters would be
raised in the general meeting as MSWG will act on their behalf.
Furthermore, MSWG also plays a substantial role and offers service as proxy advisor
to the minority shareholders of the public companies in Malaysia for a relatively reasonable
fee. In exercising its role as a proxy advisor, the function of MSWG is basically to advice on
the matter or question that would need to be raised as well as how the minority shareholders
need

to impose these questions in a proper manner

at the extraordinary general

meeting(EGM) or the annual general meeting (AGM) of the public companies.

In relation to that, the plan of action that is strategized by MSWG in playing its role as
proxy advisors to minority shareholders works in a very organized way. Firstly, MSWG
would write letters which is also recognized as MSWG letters. Secondly, these letters would
be directed to the corporate secretaries in the particular public company which has been
identified. This is done in order to request the points of interest pertaining to an issue that
needs to be addressed as well as to highlight key matters for clarification from the board in
the upcoming annual meeting of the companies. One of the instances that MSWG would be
requested by the public companies in Malaysia to attend the general meetings would be when
the particular public listed company is being questioned on several issues that are raised by
the minority shareholders of the company. Therefore, these meetings with the board will
certainly give a chance to minority shareholders to name the MSWG as a substitute which is
also known as proxy advisor. Subsequently, this would ensure that MSWG will play its part
by raising issues and concerns instead of the minority shareholders raising issues by
themselves and this would definitely safeguard the interest of minority shareholders interests
of in public companies.
Moreover, MSWG also plays a role in safeguarding the interest of minority
shareholders interests of in public companies in Malaysia by creating awareness in matters
pertaining to the rights of minority shareholders on several areas so that the shareholders
would be aware when their rights are being infringed or disregarded by the public companies
as any decisions pertaining to the companies are controlled by the majority shareholders. This
works hand in hand in promoting and endorsing adherence to the values of good corporate
governance within a public company as well as the corporate sector as a whole in Malaysia.
Furthermore, MSWG had played an active role in safeguarding the interest by
minority shareholders in public companies in Malaysia as it can be seen evidently as MSWG
persistently takes initiatives to raise the level of corporate administration and mindfulness
among the minority shareholders in Malaysia in matters relating to the avenues that are
available for them to enforce their rights as knowing their rights alone would not do justice if
the minority shareholders are not aware of the available avenues. Additionally, not only that
MSWG creates awareness about the rights of the minority shareholders in a public company
in Malaysia, MWSG also plays a vital function whereby in any event that any activities or
undertaking are done which is against the interest of the minority shareholders in Malaysia,
MSWG would take proactive measures by reporting the activities to the regulatory authorities

so that actions could be taken as well as to make sure that the interest of the minority
shareholders would be protected and safeguarded in any circumstances in Malaysia.