Kuala Lumpur, 5 May 2011
Appeal Court affirms High Court’s decision and dismisses Syarikat Kayu Wangi’s appeal

The Court of Appeal has on 29 April 2011 ruled in favour of the Securities Commission Malaysia (SC) and Bursa Malaysia to dismiss with costs Syarikat Kayu Wangi’s appeal against the High Court’s dismissal of its judicial review application on 14 September 2009.

Syarikat Kayu Wangi had in December 2007 filed a judicial review proceeding at the High Court in Shah Alam, seeking Court orders to quash both the SC’s decision to reject the company’s restructuring scheme as well as Bursa Malaysia’s decision to delist the company from the Second Board of Bursa Malaysia. The company sought the order on the grounds that the SC and Bursa Malaysia had made their decisions without just cause.

On 14 September 2009, Justice Dato’ Hinshawati Binti Shariff dismissed Syarikat Kayu Wangi’s application with costs and rejected Syarikat Kayu Wangi’s contention that there had been a breach of natural justice.

At the Court of Appeal, after considering the submissions of all parties, Court of Appeal judges Datuk Ramly bin Haji Ali, Datuk Zaharah Binti Ibrahim and High Court Judge Dato’ Azhar bin Mohamed agreed with the SC’s and Bursa Malaysia’s submission that the courts should be slow to interfere with decisions made by the capital market regulator on listing matters. The judges remarked that market stability would suffer if the courts were to unreasonably intervene with decisions of the regulator as this would lead to uncertainty in the market.