Kuala Lumpur, 17 September 2015
High Court Affirms Conviction on misleading disclosures
The Kuala Lumpur High Court today dismissed the appeal by two former independent directors of Transmile Group Berhad against their conviction and sentence for knowingly authorising the furnishing of a misleading statement to Bursa Malaysia in 2007.
Shukri Sheikh Abdul Tawab, 51, and Jimmy Chin Keem Feung, 50, were in 2011 found guilty by the Sessions Court under section 122B(b)(bb) of the Securities Industry Act 1983 for knowingly authorising the furnishing of a misleading statement to Bursa Malaysia in Transmile Group Berhad’s ‘Quarterly Report on Unaudited Consolidated Results for the Financial Year Ended 31 December 2006.
The misleading statement was in respect of the unaudited revenue figures of Transmile Group Berhad which were reported to the stock exchange for both the 4th quarter of 2006 as well as the cumulative period of 4 quarters of 2006.
Both Shukri and Chin who were at the material time, members of the Audit Committee and independent directors of Transmile Group Berhad, were charged in November 2007 for the offence. During the trial, 11 witnesses were called by the prosecution while both accused testified when their defence was called.
Justice Dato’ Mohd Azman bin Husin in upholding the conviction and sentence imposed by the Sessions Court, stated that the prosecution had established the ingredients of the offence and that the Appellants had failed to cast a reasonable doubt on prosecution’s case. He also affirmed the sentence which had been imposed by the Sessions Court on Shukri and Chin which was imprisonment for a term of one year and a fine of RM300,000 (in default six months imprisonment).
SECURITIES COMMISSION MALAYSIA