What governance rules under the Companies Act 2016 require this vote?

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Shareholders' Approval Mandated for Maxis's 5G Access Agreement with DNB

Maxis Bhd's board of directors will seek shareholders' approval to enter into the 5G access agreement with Digital Nasional Bhd (DNB), a move deemed mandatory under Section 223 of the Companies Act 2016 and paragraph 10.07 of the Bursa Main Market Listing Requirements. This requirement stems from the substantial nature of the undertaking involved in the access agreement. The company aims to complete this approval process by January 2023 to facilitate a future commercial launch of 5G services.
Section 223 of the Companies Act 2016

Section 223 of the Companies Act 2016 pertains to a company's obligations regarding substantial transactions or arrangements. Given the significant commitment and the nature of the 5G access agreement with DNB, Maxis's board has determined that shareholder consent is a prerequisite for proceeding. This ensures that major corporate actions receive oversight from the company's owners.
Bursa Main Market Listing Requirements

Paragraph 10.07 of the Bursa Main Market Listing Requirements further mandates shareholder approval for transactions that are significant in size or nature. The agreement with DNB, which will form a crucial part of Maxis's future service offerings and infrastructure, falls under this purview. Adherence to these listing requirements is essential for maintaining transparency and corporate governance standards on the stock exchange.
Board's Assessment and Professional Advice

The board of directors at Maxis has conducted a thorough assessment of the governance requirements associated with the DNB agreement. This evaluation, undertaken in reliance on professional advice, has reinforced the belief that seeking shareholders' approval is not merely procedural but a mandatory step. The decision underscores the importance of shareholder consent for undertakings of this magnitude.
Intention for Future 5G Launch

Maxis is committed to playing a leading role in the nation's 5G deployment through DNB's network. The company anticipates bringing advanced 5G services and converged solutions to its customers. The successful completion of the shareholder approval process by January 2023 is a critical step before Maxis can commercially launch its 5G-related products and services.

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What governance rules under the Companies Act 2016 require this vote?

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