1. Why a Company Can Be Suspended for Lack of Free Float

Bursa Malaysia’s Listing Requirements mandate that at least 25% of a listed company’s shares must be held by the public (public shareholding spread).

If the public spread falls below 25%, the company is considered non-compliant.
Bursa will then:

Issue a notice of non-compliance.

Require the company to submit a rectification plan every 6 months to restore the public spread.

If the company fails to remedy the issue within the allowed period, Bursa may suspend trading and ultimately delist the company.

This rule exists to ensure liquidity and investor protection.

2. Can a Major Shareholder Pressure the Board to Do Nothing?

In practical terms:
Yes, a major shareholder can exert influence, especially if the board consists mostly of directors aligned with or appointed by that shareholder.

However, from a legality and governance standpoint:
No, they cannot validly instruct the board to violate listing rules.

A major shareholder may wish to delay rectification to push toward a forced delisting or privatisation scenario, but any explicit instruction to ignore Bursa rules would be:

a breach of the Major Shareholder’s duties under the Companies Act (if behaving oppressively),

a breach of directors’ obligations if followed blindly,

exposing directors to regulatory, civil, and possibly criminal consequences.

In real life, such influence is typically indirect or tacit.

3. Does the Board Have Fiduciary Duties to Maintain Listing Status?

Yes. Directors’ duties in Malaysia are governed by the Companies Act 2016, including:

Section 213 — Duty to act in the best interest of the company

Directors must act in the interest of the company as a whole (not only the major shareholder).

Interpreting “company’s best interest”

For a listed company, the “best interest” includes:

Maintaining compliance with Bursa Malaysia Listing Requirements

Protecting all shareholders (including minority shareholders)

Avoiding actions that cause regulatory penalties, reputational harm, or suspension

Therefore, directors have a fiduciary obligation to take reasonable steps to maintain the company’s listing status.

Consequences of negligence or inaction:

If directors refuse to act to restore the public spread:

Bursa Malaysia may take regulatory action (including reprimands or fines).

Minority shareholders may sue for:

minority oppression (Section 346 CA 2016)

breach of fiduciary duty

Directors risk personal liability if they knowingly act against the company’s interests.

In short:
Failure to take rectification action is potentially a breach of fiduciary duty, especially if the inaction benefits only the major shareholder.

4. Could the Board Deliberately Allow Suspension to Assist Privatisation?

In theory, yes — companies with controlling shareholders have sometimes allowed their public spread to lapse to make privatisation easier.

BUT:

Bursa monitors this closely.

Bursa can still reject delisting.

Directors cannot simply do nothing. They must show reasonable efforts toward rectification, even if the outcome is unsuccessful.

The board cannot officially submit a “fake” or non-serious rectification plan — that would be evidence of bad faith.

5. Applying This to the Genting Malaysia Situation

Important points:

Genting Berhad holds a large stake in Genting Malaysia but is not yet at the 75% threshold that would trigger a mandatory delisting offer.

If Genting Berhad continues buying shares and accidentally breaches public spread requirements (public float < 25%), Genting Malaysia must submit a rectification plan.

The Genting Malaysia board includes independent directors who are legally required to protect minority shareholders.

Could Genting Berhad pressure the board to “do nothing”?

They could try, but:

Any board that fails to act risks legal and regulatory consequences.

Independent directors have duties and cannot simply follow the parent company’s desires.

Bursa would view intentional non-compliance very negatively.

If the board intentionally fails to restore free float:

Bursa can suspend trading.

Minority shareholders could sue Genting Malaysia’s directors.

The major shareholder may not automatically get an easier privatisation — Bursa still controls delisting approval.

Thus, the strategy of “letting suspension happen on purpose” is risky and not guaranteed to benefit the major shareholder.

6. Bottom Line
1. Can the major shareholder pressure the board to not fix the free float?

They can try, but the board cannot legally comply.
Doing nothing violates directors’ fiduciary duties and Bursa rules.

2. Does the board have fiduciary duties to all shareholders to maintain listing status?

Yes.
Failure to take reasonable rectification steps can expose directors to legal liability.

3. Could inaction lead to suspension by Bursa?

Yes — but if proven intentional, it may bring legal consequences against the directors and possibly the controlling shareholder.

4. In the case of Genting Malaysia

It would be legally and reputationally dangerous for the board to ignore Bursa’s rectification requirement, even if Genting Berhad wants eventual privatisation.

Google AI:
"Following the failed privatization bid for Genting Malaysia Bhd (GENM) on December 1, 2025, the offeror, Genting Bhd (GENT), and parties acting in concert are restricted from making another takeover offer for the same company for a period of 12 months. This 'cooling-off period' is mandated by the Malaysian Rules on Take-Overs, Mergers and Compulsory Acquisitions."

简单来说，即使迟些时候，Genting Group收购超过75%，Genting Malaysia 并不会自动停牌。之前已经有很多类似的例子了。是的，Genting大老板可以“明示”、“暗示” Genting Malaysia 的董事，要求他们”配合“，好让Genting Malaysia 被Bursa 停牌，以吓吓小股东。可是这可是犯法的！林家敢做吗？值得做吗？也许只是一些不明就里的Genting小股东在幻想罢了。其实我认为两边的小股东都是在同一条船上。Genting Malaysia 也好， Genting Group 也好，只要公司的 corporate governance 有问题，大股东继续占小股东便宜，任何一家Genting 的估值都是继续大打折扣！

回应另一个评论。是的，在某些领域，AI幻觉是个问题，特别是你需要精准答案而又无从比较的情况之下。所以我才说要懂得问，而且要比较不同AI给出的答案。只要懂得问，就可以要求AI提供资讯来源、提供先例、然后自己在综合判断是么是合理的答案。况且今天的LLM已经大有进步。Gemini 2.5 与 Gemini 3.0的表现非常好。起码好过那些乱说一通，口说无凭的人。

@James, true, I do not trust LKT as well—too ambitious! Since I acquired the GENM shares very low in April, I may still hold them until May next year to witness the effects of the drastic Fed rate cut on the ringgit (stronger) and GENM (mostly ringgit generator)!

Ambitious is not wrong. But Genting has serious corporate governance problems. The way it funded Empire Resort by initially subscribing multiple rounds of preference shares rather than outright purchase; the way it structured the deal below 5% value to evade a vote by the minority; all of them speak volume about its treatment of minority shareholders. That's why cheap has become cheaper over the years.

这么巧？
收购开始前就先信心满满借好了钱
刚好收购最后一天猛加8%accaptance
刚好差2%到75%停牌门槛
刚好Genting可以用2.35以下再买2%
刚好genm股价跌破2.35
正常人看到73%就跑了咯，人家拿枪指着叫你快滚，你站着赌别人不敢开枪？

logic一点好吗？
如果你现在面对genm的纸面亏损，想等它升回去再卖掉，所以坚持不卖
但是你有没有想过一个问题，你卖了genm去买genting的话，你等genting升回去的难度是和你等genm升回去的难度是一样的
重点是，两个难度相同的情况下，你不需要承担genm停牌的风险
这么简单的道理，为什么转牛角尖？

Google AI:
"In Malaysia, forcing people to sell stocks is a crime under market manipulation laws, primarily governed by the Capital Markets and Services Act 2007 (CMSA). The Securities Commission Malaysia (SC) oversees these regulations and has taken action against individuals for manipulating stock prices through various deceptive and unlawful practices."

首先，你要知道的是，不满足25%public spread是不会马上下市的，会有一个announcement,讲几时会delist from bursa, 第2，你都走到这里了，你现在才要卖？
第3，根据公司法令，你不卖，你永远还是股东。他们拿不了你怎样的，有股东大会，还是要叫你，right issue还是会通知你，有派dividend的话还是会派你。
第4，gent要从genm拿钱，唯一省税的方法就是派dividend.

第5，不要忘记，赌场在马来西亚是monopoly license, 加上美国赌场license叻，敢敢hold 它罢了。

第6，当然如果LKT是可以不派息的，然后派几个director来genm拿薪水，不过不缺实际的啦，因为个人税超过100k之后每一块tax 25%. 你就每年AGM去念一下管理层咯

第6，下市后，用right issue来把你的股份变少(如果你不subscribe的话) 可能性低，因为gent要出更多钱。

不过你急用钱的话可以现在卖，不急用钱，然后理解下市后是很难卖的了，可以敢敢hold.不要慌

担不起风险那早些时候干嘛去？
要得到更多那必须承担更多的风险。
那个什么哥没叫你们在2.38放出去，然后 2.18再买回，再然后收著，等老板出高价收购吗？不要急。等那哥出来指路，等好市时他会出现的。
万勿急病了，赚到那一些是不夠给医藥費。
財富诚可贵但健康更是宝!

根据交易所条例规定，收购提案失效后的12个月内，收购方最多仅可购入目标公司2%的上市股份。

但现在云顶已经有73.133%了。所以要过75%只是时间问题了。

大众持股不到25％就会有停牌的风险。停牌了股市就不能交易。

公司不能解决大众持股不到25％的问题，就会有下市的可能。