Thursday 28 Mar 2024
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This article first appeared in The Edge Malaysia Weekly on February 4, 2019 - February 10, 2019

Last week, Datuk Shireen Ann Zaharah Muhiudeen was appointed the new non-executive chairman of Bursa Malaysia Bhd, effective March 1, succeeding Tan Sri Amirsham Aziz, who held the position for nearly four years.

Shireen has over 30 years of experience in fund management and is the founder, managing director and principal fund manager of Corston-Smith Asset Management Sdn Bhd.

A company search shows that Shireen has been a director of Corston-Smith for almost 12 years and has a direct 58.1% stake in it.

Corston-Smith is an independent Southeast Asian asset management firm, owned and managed by an active investment team and licensed by the Securities Commission of Malaysia. It provides fund management services to institutional clients, with an emphasis on achieving superior long-term financial returns through tacit local knowledge.

Information on Corston-Smith’s website gives the impression that Shireen is actively involved in the day-to-day operations and investment policies and decisions as its managing director and principal fund manager.

While we do not doubt that with her vast experience in capital markets, she would be ideal for the role of Bursa chairman, her appointment raises the question of potential conflicts of interest.

Her position on the board is non-executive, but because Bursa handles a considerable amount of sensitive information on publicly traded companies, will her appointment open the door to conflicts of interest unless she resigns from Corston-Smith or maybe even disposes of her interest in the firm?

It is worth noting that Bursa’s board comprises independent and non-executive members who are involved in the management of listed companies and brokerage firms. But surely the chairman — the first among equals no less — should be held up to a higher standard?

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