Demutualisation of Stock Exchange

From Toronto computer storage supplant to TSE Inc.: Toronto?s Experience with Demutualization 17 Demutualization of the Filipino furrow Exchange Maria Larrie Alinsunurin1 17.1 Introduction 17.1.1 Background The Philippine melodic phrase market is one of the oldest in Asia. For decades, there were two separate domestic stock exchanges that traded basically the same listed issues: the Manila Stock Exchange (MSE), established on 8 August 1927, and the Makati Stock Exchange (MkSE) founded on 27 May 1963. In 1992, President Fidel V. Ramos declared a politics policy of consolidating the operations of both exchanges to develop a to a greater extent efficient capital letter market. Thus, on 14 July 1992, the two bourses were merge under the Philippine Stock Exchange, Inc. (PSE). 17.1.2 Legislation and Regulation alter the Exchange The enactment of the Securities Regulation Code (SRC) is a single order of legislation that affected the structure and operations of PSE (the Exchange). Section 33.2 (a) of the SRC mandated the shake-up of the PSE as a stock corporation by 8 August 2001. Thus, by a stroke of legislative pen, the dower of the PSE as a demutualized exchange was determined. 1 Special Counsel and Consultant, Philippine Stock Exchange, Inc.

299 Part II: Demutualization Case Studies 17.2 Ownership building of the Stock Exchange Upon Demutualization 17.2.1 Conversion as a Stock Corporation As a legal concept, demutualization is strictly the variety of a mutual or member organization into a stock corporation. However, the listing of the exchange via introduction to the market and without the raising of capital consequently expands the ownership structure (i.e., Australian Stock Exchange (ASX) and Hong Kong Stock Exchange (HKEx)) and is widely seen as an effective course of improving corporate governance. The strict timetable and the absence of steady revenue streams constrained the adoption of two steps in demutualization: conversion into a stock corporation and... If you want to get a full essay, order it on our website: Orderessay

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