Kuala Lumpur, 28 September 2015
Court of Appeal upholds SC law to be Constitutional
The Court of Appeal today ruled in favour of the SC when it held that section 122(1) of the Securities Industry Act 1983 (SIA) to be constitutional. Justice Dato’ Tengku Maimun Binti Tuan Mat, in delivering the decision of the Court of Appeal stated that the section did not violate the Federal Constitution.
Gan Boon Aun and Khiudin Bin Mohd, the former Chief Executive Officer and Executive Director of Transmile Group Berhad, was charged in 2007 for abetting Transmile in making a misleading statement relating to TGB’s revenue in the company’s unaudited consolidated results for the financial year ended 31 December 2006, under section 86(b) read together with section 122C(c) of the Securities Industry Act 1983 (SIA).
Both Gan and Khiudin were also charged with an alternative charge for furnishing the same misleading statement to Bursa Malaysia under section 122B(a)(bb) read together with section 122(1) of the SIA.
Both the accused persons were called to enter their defence on the alternative charge. In June 2011, Gan and Khiudin challenged the validity of the alternative charge arguing that the law was inconsistent with, among others, Article 5(1) of the Federal Constitution. In November 2011, the High Court upheld the challenge and ruled that the section was unconstitutional.
The prosecution then filed an appeal to the Court of Appeal against the decision of the High Court. Today the Court of Appeal overturned the decision of the High Court and held the provision to be valid but granted a stay of its decision pending the defence’s appeal to the Federal Court.
SECURITIES COMMISSION MALAYSIA