Direct interest means the directors hold the shares under their own name, while indirect interest means that they have an interest in the company via a third party, be it a spouse, or another company owned by the director. Sometimes, especially in family-owned businesses, several directors may have ownership of a private company, which then hold shares of the listed entity. For example, Directors A, B and C co-own X Sdn Bhd, which holds 33% interest in Z Bhd. The indirect interest listing will show that Director A, B and C have indirect interest of 33%. But if you total them up, you would get 99%, which does not make sense. Effectively, the 3 directors co-own 33% of Z Bhd. You have to pay attention to such intricacies when considering direct and indirect interest.
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