Kuala Lumpur, 21 April 2011
Bestino Group Berhad Directors charged by the SC
The Securities Commission Malaysia (SC) today charged Chong Yuk Ming and Balachandran A/L A. Shanmugam for failing to register a prospectus with the SC in relation to the issuance of Redeemable Preference Shares by Bestino Group Berhad (“Bestino”). The offence was committed between 3 November 2008 and 16 June 2009 at Bestino’s office in Ipoh, Perak. Under section 232(1) of the Capital Markets and Services Act 2007 (CMSA), a person shall not issue securities unless a prospectus in relation to that securities has been registered by the SC.
Bestino is believed to have solicited approximately RM400 million from the issuance of redeemable preference shares to over 6000 individuals.
Chong Yuk Ming, 49 and Balachandran, 56 ,who were at that time directors of Bestino, are deemed to have committed the offence under section 232(1) read together with section 367(1) of the CMSA.
If convicted they will be liable to a fine not exceeding RM10 million or to imprisonment for a term not exceeding 10 years or both. Chong Yuk Ming and Balachandran were granted bail of RM300,000 with one surety. The court also impounded Balachandran’s passport. The case is fixed for mention on 1 June 2011.
SECURITIES COMMISSION MALAYSIA