Updates on PN17 Firms &Some Reasons For Firms being classified under PN17 (Practise Note No 17)

Major Reasons For Companies/Firms to Fail

Extracted from Bursa Saham Malaysia,the total PN 17 companies/firms:

1. ARK RESOURCES BHD ¹
2. AKN TECHNOLOGY BERHAD ²
3. AXIS INCORPORATED BERHAD ²
4. EVERMASTER GROUP BERHAD ²
5. FOUNTAIN VIEW DEVELOPMENT BERHAD ³
6. HAISAN RESOURCES BERHAD ³
7. HO HUP CONSTRUCTION BERHAD ²
8. HOCK SIN LEONG GROUP BERHAD ³
9. GULA PERAK BHD ³
10. IBRACO BERHAD ³
11. JPK HOLDINGS BERHAD ³
12. KENMARK INDUSTRIAL CO. (M) BERHAD ³
13. LCL CORPORATION BHD ³
14. LIMAHSOON BERHAD ³
15. LINEAR CORPORATION BERHAD ³
16. LUSTER INDUSTRIES BHD ²
17. MALAYSIAN MERCHANT MARINE BERHAD ³
18. NAM FATT CORPORATION BERHAD ³
19. NGIU KEE CORPORATION (M) BERHAD ³
20. NIKKO ELECTRONICS BHD ²
21. OCI BERHAD ²
22. OILCORP BERHAD ³
23. RAMUNIA HOLDINGS BERHAD ³
24. RHYTHM CONSOLIDATED BERHAD ²
25. SATANG HOLDINGS BERHAD ²
26. SELOGA HOLDINGS BERHAD ²
27. STAMFORD COLLEGE BERHAD ²
28. SYARIKAT KAYU WANGI BERHAD ²
29. THE AYER MOLEK RUBBER COMPANY BERHAD ³
30. TRACOMA HOLDINGS BERHAD ³
31. TRANSMILE GROUP BERHAD ³
32. TRIPLC BHD ²
33. VTI VINTAGE BERHAD ³
34. WWE HOLDINGS BERHAD ²

¹ Companies that triggered any of the criteria pursuant to Practice Note 17/2005 of the Listing Requirements of Bursa Malaysia Securities Berhad which came into effect on 3 January 2005

² Companies that triggered any of the criteria pursuant to Amended Practice Note 17/2005 of the Listing Requirements of Bursa Malaysia Securities Berhad which came into effect on 5 May 2006.

³ Companies that triggered any of the criteria pursuant to Practice Note 17 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad which came into effect on 3 August 2009.

Some of the major reasons for firms or companies falling into PN17 categories in Bursa Saham Malaysia includes the following:

• Companies’shareholders’funds are less than 25% of their total paid up capital;
• Winding up of some of their subsidiaries and associated companies;
• Default in loan interest and principal repayments;
• Companies have suspended or ceased their operations;
• Companies do not have any significant business or operations;
• Receivers have been appointed to take control of the companies’assets;
• Auditors have expressed adverse opinions on the companies

Interestingly,the above are just the outcomes when the companies turned into PN17 companies,the basic underlying reason is that  companies are not properly managed –refer to my other articles on what are the mains reasons for companies to fail

• Commencement of de-listing procedures against KL Infrastructure Group Berhad Under Amended PN-17
• Bursa Commences Delisting PN17 Company,Polymate
• PN17:Ekran To Be De-listed
• Minimum capital required for listed firms may rise 10 times
• Malaysia:Bursa Securities (KLSE) Amends Rules on Bonus Issues
• Accounting Fraud Updates:Megan Media Holdings Berhad
• Accounting Fraud Updates:Liqua Health Corporation Bhd