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805

Except as provided in Rule 806, an issuer must obtain the prior approval of shareholders in general meeting for the following:—

(1) The issue of shares or convertible securities or the grant of options carrying rights to subscribe for shares of the issuer; or
(2) If a principal subsidiary of an issuer issues shares or convertible securities or options that will or may result in:—
(a) the principal subsidiary ceasing to be a subsidiary of the issuer; or
(b) a percentage reduction of 20% or more of the issuer's equity interest in the principal subsidiary. For example, if the issuer has a 70% interest in a principal subsidiary, shareholders' approval will be required for any issue of shares in the principal subsidiary reducing the issuer's equity interest to 56%.