Bursa Securities fines 10 Serba Dinamik directors

 

The 10 directors include its group managing director and chief executive officer Abdul Karim Abdullah.

PETALING JAYA: Bursa Malaysia Securities Bhd has fined 10 Serba Dinamik Holdings Bhd’s directors between RM355,200 and RM1,376,000 for breaching market listing requirements.

The 10 directors include its group managing director and CEO Abdul Karim Abdullah.

In a statement, Bursa Securities listed several breaches by the group, including failure to announce their factual findings immediately.

The regulator said the group had also failed to issue the annual report, including the annual audited financial statements with the auditors’ and directors’ reports, for the 18-month financial period ending June 30, 2021.

Bursa Securities also said there was a serious dereliction of duties by the board, particularly in failing to ensure proper and timely disclosure of material information, display transparency to the market, and comply with its directives.

“We will not hesitate to take enforcement action against culpable directors who fail to discharge their duties,” it said.

In September, Bursa Securities had also publicly reprimanded and fined Karim for failure to provide proper notice of the disposal of his interest in the company.

Karim was penalised for breaching paragraph 14.08(d) of the Main Market Listing Requirements, which stipulates that a director must notify the company secretary within one full market day in the event of a disposal of the company’s shares.

The company must then immediately announce such notice to the stock exchange, including the date of the dealing, its considerations as well as the number of securities involved.

On May 9, 2022, 107.96 million Serba Dinamik shares held by Karim – representing 2.91% of the company’s equity – were disposed of by way of forced selling.

The shares had been pledged by Karim to a lender pursuant to a loan agreement. The disposal, however, was only announced on Aug 12, 2022.

Karim claimed that he was not notified of the forced disposal, but Bursa Malaysia said the explanation was unacceptable and that he should have been aware of the circumstances as required under the regulations. - FMT