What is PN 17? PN 17 stands for Practice Note 17/2005.

It is easy to say that a PN 17 company is public listed company with financial problem. The problem could broad to debt, asset or solvency issue. Currently there are 15 companies listed as PN17 companies in Bursa Malaysia (updated 9 May 2012). How a companies can be listed as PN17 companies. There a certain criteria that match companies circumstances that causes them to be listed as PN17 companies. Those criteria are: 1. Shareholders equity is equal or less than 25% of the total issued and paid up capital of the listed company, where shareholder equity is the equity listed by the companies under the approval of Malaysian Accounting Standard Board; or 2. Receivers and/or managers have been appointed to take control of at least 50% of the total assets employed of the listed company on a consolidated basis, where the total asset employed must be from companies latest audited financial statement; or 3. Fund gain from the selling/liquidize of a subsidiary or associate company makes up at least 50% of the total assets employed of the listed company on a consolidated basis; or 4. The auditors have expressed adverse or disclaimer opinion on the listed companys latest audited accounts; or 5. For any default in payment, the company must announce its inability to provide a solvency declaration through Practice Note 1/2001 or PN1; or 6. The listed company has suspended or ceased all or a major part of its operations due to cancellation, loss or non-renewal of a license, companies dispose their main business operation or simply close die to court order. Here, major operation must be operation that contribute at least 70% revenue to the companies or 7. Companies have an insignificant business or operations; where insignificant can be consider as operation that only produce 5% or less revenue to the companies. Following the announcement that the company had being listed by the Bursa Malaysia as PN17 companies, they are compulsory obligation need to be done. Here companies must publish the entire following requirement in order to ensure equality and fairness to investor to access all the necessary information. These following requirements are: 1. Companies must announce that the are companies listed under PN17 companies list immediately 2. Companies must announce their debt, bond, shares and other obligation faced by companies. Their also need to mention the consequences of non compliance with the obligation mentioned.

3. Companies must announce their compliance status with Regularise plan or status of their current formularize plan on the monthly basis 4. Companies must announce either their will complied or not with any of their current obligation 5. Companies must announce the details of the Regularisation Plan. Regularisation Plan is the plan done by the companies to regularize their current condition. The plan must be is comprehensive and capable of resolving all problems, it action allow the company to regularise its financial condition and level of operations and it is fair and reasonable to the companies and its shareholders. The regularization also must fulfill the Requisite Announcements, which is an announcement will be made to lineout the details of the Regularisation Plan and it time to complete. It also must be announced by the corporate financial adviser/ principal adviser that being appointed. However, before the companies make their Requisite Announcements, they must ensure that all their agreement with third party have being executed according to the agreement. Furthermore, is the Regularisation Plan involve any arrangement that will effected the companies creditor, they need to make sure there is agreement-in-principle have being made between the companies and their creditor. Every announcement must be made on the first day of the market day in each month. Moreover, companies must submitted and announcement their Regularisation Plan within 8 month form the date of their announcement entering PN17. When the Regularisation Plan produce desirable result, companies must submitted the plan to the Security Commissioner for approval within 12 month and the companies must executed the plan within the rimeline approved by the Security Commissioner However, if the Regularisation Plan does not produce a significant change to the company, they must submit to the Exchange the plan and obtain the approval to implement the plan within 12 months from the date of the first announcement. Then the companies must complete the implementation of the plan within 6 months from the date the plan is approved by the Exchange. For cases that involve court proceedings, company had12 months from the date the plan is approved by the Exchange, to complete the implementation of the plan. after that, companies must record profit of 2 quarterly accounting period immediately after the completion date. Reference http://www.bursamalaysia.com/website/bm/listed_companies/list_of_companies/pn17_companie s.html http://www.fin-fsa.fi/en/Listed_companies/Disclosure_obligation/Pages/Default.aspx