Why does Maxis need shareholders’ approval for its 5G access deal?

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Maxis Requires Shareholder Approval for 5G Access Agreement with DNB

Maxis Bhd's board of directors will seek shareholder approval to enter into the 5G access agreement with Digital Nasional Bhd (DNB). This requirement stems from the mandatory provisions of Section 223 of the Companies Act 2016 and paragraph 10.07 of the Bursa Main Market Listing Requirements. The board has determined that shareholder consent is necessary due to the significant nature of the agreement and the substantial commitment it entails.
Compliance with Regulatory Requirements

The decision to seek shareholder approval is a direct response to specific regulatory mandates. Section 223 of the Companies Act 2016 outlines conditions under which a company must obtain shareholder consent for certain transactions. Furthermore, paragraph 10.07 of the Bursa Main Market Listing Requirements imposes obligations on listed companies concerning substantial transactions, which this 5G access agreement is considered to be.
Substantial Undertaking and Agreement Nature

Maxis has indicated that the board's assessment, supported by professional advice, points to the mandatory nature of shareholder approval. This is primarily due to "the nature of the access agreement and the substantial undertaking involved." This suggests that the terms and scale of the commitment with DNB exceed thresholds that typically require broader company endorsement beyond board-level decisions.
Commitment to 5G Rollout

Despite the procedural requirement for approval, Maxis has reiterated its commitment to a leading role in the national 5G deployment. The company aims to leverage DNB's network to deliver 5G services and converged solutions to its customers. The intention is to commercially launch these offerings soon after obtaining the necessary shareholder endorsement, with a target completion of the approval process by January 2023.

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Why does Maxis need shareholders’ approval for its 5G access deal?

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