Lawyer in insider trading case up for board re-election at Sime Darby

File photo of Sreesanthan (left) leaving the Sessions Court after being charged with insider trading of Sime Darby, UEM and Maxis shares, in Kuala Lumpur on July 20, 2012. — Picture by Choo Choy May

KUALA LUMPUR, Oct 25 — Datuk Sreesanthan Eliathamby, who has been charged with insider trading by the Securities Commission, has offered himself up for re-election as director at the upcoming Sime Darby annual general meeting, according to a Sime filing with Bursa Malaysia.

The statement said that Sreesanthan was one of three directors who are retiring by rotation but has offered himself up for re-election.

The Securities Commission had in July charged Sreesanthan with insider trading in four companies between 2006 and 2008.

Following the charges, Sime Darby announced that Sreesanthan would be taking a leave of absence and be retiring by rotation.

The Edge reported today citing sources that Sreesanthan had taken a leave of absence to prepare to face the insider trading case and is now ready to resume his duties as a director.

Sreesanthan was charged with insider trading involving shares of Sime Darby, UEM World, VADS and Maxis.

The charges involve three counts of insider trading in the shares of Sime Darby in 2006, ahead of the acquisition by Synergy Drive of companies within the Sime Darby, Guthrie and Golden Hope groups.

Two counts of insider trading in the shares of Maxis Communications Berhad, which were preferred under the Securities Industry Act 1983, were alleged to have taken place during the privatisation of Maxis in 2007.

Two other charges were preferred for insider trading under section 188(2) of the Capital Markets and Services Act 2007 involving the shares of UEM World Bhd and VADS Bhd in 2008.

Sreesanthan’s trades in UEM World were said to have been made with his knowledge of the corporate restructuring of the UEM group, while his trades in VADS allegedly involved his knowledge relating to VADS’s proposed privatisation.

The offences under both Acts carry a punishment of a fine of not less than RM1 million and imprisonment of a term not exceeding 10 years.

The Securities Commission said that Sreesanthan claimed trial to the charges.

The Sime Darby AGM will take place on November 8 at the Sime Darby Convention Centre in Kuala Lumpur.