Details of Civil Action Taken in 2017

No. Breach Defendants Brief facts of the case
1. Insider trading
  • Yeow Kheng Chew
  • Paulene Chee Yuet Fang
  • Tan Yee Chee
On 26 July 2017, the SC filed a civil suit against Yeow Kheng Chew (Yeow), Paulene Chee Yuet Fang (Paulene Chee) and Tan Yee Chee (Tan). The SC sought, among others:

  • A declaration that Yeow had contravened s188(2)(a) CMSA when he acquired 5,159,000 Kencana Petroleum Berhad (Kencana) shares between 2 June 2011 and 8 July 2011 through the trading accounts of Paulene Chee, Asia Premium Corp, Angnew Resources Limited;
    A declaration that Paulene Chee had contravened s188(2)(a) CMSA in respect of the acquisition of 5,159,000 Kencana shares between 2 June 2011 and 8 July 2011 through her trading account as well as the trading accounts of Asia Premium Corp and Angnew Resources Limited;
  • A declaration that Tan had contravened s188(2)(a) CMSA in respect of the acquisition of 1,159,000 Kencana shares on 8 July 2011 through Paulene Chee’s trading account;
  • An order that Yeow and Paulene Chee severally pay the sum of RM2,326,980 being three times the difference between the price at which the Kencana shares had been acquired and the price at which the Kencana shares would have been likely to have been acquired at the time of the acquisition, if the inside information relating to the proposed merger of Kencana and SapuraCrest Petroleum Berhad (SapuraCrest) had been generally available;
  • An order that Tan pay the sum of RM452,280 which is equivalent to three times the amount of RM150,760 being the difference between the price at which the Kencana shares had been acquired and the price at which the Kencana shares would have been likely to have been acquired at the time of the acquisition, if the inside information relating to the proposed merger of Kencana and SapuraCrest had been generally available;
  • An order for civil penalty of RM1,000,000 against Yeow, Paulene Chee and Tan severally;
  • An order that Yeow, Paulene Chee and Tan be barred from being a director of any public listed company for a period of 10 years;
    An order that Yeow, Paulene Chee and Tan will refrain from any involvement in the management of any public listed company for a period of 10 years;
  • Interest;
  • Costs.

On 15 August 2017, the High Court recorded a Consent Judgment between the SC and the three Defendants granting the orders which were sought by the SC.

2.
  • Use of manipulative and deceptive devices
  • Causing wrongful loss to a listed corporation
Datin Chan Chui Mei On 26 September 2016, the SC filed a civil suit against Datin Chan Chui Mei. The SC is seeking, among others:

  • A declaration that Datin Chan had contravened section 179 and 317A of the CMSA;
  • An order that Datin Chan makes restitution to persons aggrieved by the contravention;
  • An order that Datin Chan pays the SC the sum of RM11.54 million, to be held in trust for Stone Master Corporation Berhad;
  • An order that Datin Chan be barred from being a director of a public-listed company for a period of five years;
  • Civil penalty of RM1 million for the contravention;
  • Interest;
  • Costs.

On 27 March 2017, the SC obtained an order for interim injunction from the Kuala Lumpur High Court to restrain Datin Chan from dealing with the monies in her bank accounts up to the amount of RM 11.54 million until the disposal of the suit. The Kuala Lumpur High Court has also granted a stay of proceedings pending the disposal of Datin Chan’s appeal to the Court of Appeal against the decision of the High Court in dismissing her application to strike out the SC’s suit against her. The case management in Court of Appeal is set on 1 June 2017.

3. Insider trading
  • Koh Tee Jin
  • Koh Thiam Seong
  • Koh Hui Sim
On 13 March 2017, the SC filed a civil suit against Koh Tee Jin, Koh Thiam Seong and Koh Hui Sim. The SC is seeking, among others:

  • A declaration that Koh Tee Jin had communicated the material non-public information to Koh Thiam Seong and Koh Hui Sim who both had thereafter disposed Axis Incorporation Berhad (Axis) shares between 9 July 2008 and 30 July 2008;
  • A declaration that Koh Thiam Seong and Koh Hui Sim had engaged in insider trading in respect of Axis shares between 9 July 2008 and 30 July 2008;
  • An order that Koh Tee Jin, Koh Thiam Seong and Koh Hui Sim be barred from being a director of any public listed company for a period of five years;
  • A payment of the sum of RM3,546,477.00 from Koh Tee Jin which is equivalent to three times the amount of RM1,182,159 being the difference between the price at which the shares had been disposed by Koh Thiam Seong and Koh Hui Sim and the price at which the shares would have been likely to have been disposed at the time of the disposal, if the material non-public information had been generally available;
  • A payment of the sum of RM739,389 and RM2,807,088 from Koh Thiam Seong and Koh Hui Sim respectively which is equivalent to three times the difference between the price at which the shares had been disposed by Koh Thiam Seong and Koh Hui Sim and the price at which the shares would have been likely to have been disposed at the time of the disposal, if the material non-public information had been generally available;
  • Civil penalty of RM1,000,000 for the breach of section 188(3) of the CMSA by Koh Tee Jin;
  • Civil penalty of RM1,000,000 for the breach of section 188(2) of the CMSA by Koh Thiam Seong and Koh Hui Sim;
  • General and/ or aggravated and/ or exemplary damages;
  • Interest;
  • Costs.