Regulatory Settlements in 2017

Regulatory Settlement with Lee Tian Wah @ Lim Siew Wah
On 30 June 2017, Lee Tian Wah @ Lim Siew Wah entered into a settlement with the SC in the sum of RM215,890 when he agreed without admission or denial of liability to settle a claim that the SC was proposing to institute against him for insider trading in the shares of APL Industries Bhd (“APLI”) in his wife, Lai Moi’s account and his own  account, on 30 and 31 October 2007, contrary to section 188(2) of Capital Market and Services Act 2007 (“CMSA”). The inside information was in relation to the audit adjustments proposed by APLI’s auditor which would result in APLI reporting a higher loss for the financial year ended 30 June 2007 as compared to the previously reported unaudited 4th quarter results for the same financial year, and that APLI would be classified as an affected issuer pursuant to the Listing Requirements of Bursa Malaysia Securities Berhad and Practice Note 17/2005, which was announced on 31.10.2007. The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws, where the sum Lee was required to disgorge was equivalent to two times the difference between the price at which the shares were disposed and the price at which the shares would have been likely to have been disposed at the time of the disposal, if the information had been generally available. The monies recovered will be applied in accordance with section 201(7) of the CMSA.
Regulatory Settlement with Lim Lee Kuan
On 30 June 2017, Lim Lee Kuan entered into a settlement with the SC in the sum of RM323,835 when she agreed without admission or denial of liability to settle a claim that the SC was proposing to institute against her for communicating inside information contrary to section 188(3) of Capital Market and Services Act 2007 (“CMSA”) to his father, Lee Tian Wah @ Lim Siew Wah, who then traded in the shares of APL Industries Bhd (“APLI”) in his wife, Lai Moi’s account and his own  account, on 30 and 31 October 2007. The inside information was in relation to the audit adjustments proposed by APLI’s auditor which would result in APLI reporting a higher loss for the financial year ended 30 June 2007 as compared to the previously reported unaudited 4th quarter results for the same financial year, and that APLI would be classified as an affected issuer pursuant to the Listing Requirements of Bursa Malaysia Securities Berhad and Practice Note 17/2005, which was announced on 31.10.2007. Lim at the material time was a company secretary of APLI. The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws, where the sum Lim was required to disgorge was equivalent to 3 times the difference between the price at which Lee disposed the shares and the price at which the shares would have been likely to have been disposed at the time of the disposal, if the information had been generally available. The monies recovered will be applied in accordance with section 201(7) of the CMSA.
Regulatory Settlement with Yeoh Soo Ann and Chua Choon Chai
On 11 May 2017, Yeoh Soo Ann entered into a settlement with the SC in the sum of RM78,000.00 when he agreed without admission or denial of liability to settle a claim that the SC was proposing to institute against him for communicating inside information contrary to section 188(3) of Capital Market and Services Act 2007 (“CMSA”) to one Chua Choon Chai, who then traded in the shares of GW Plastics Holding Berhad (“GW Plastics”) between 25 September 2012 and 28 September 2012. The inside information was in relation to a Share Sale Agreement (“SSA”) between GW Plastics and Scientex Packaging Film Sdn Bhd (“Scientex Packaging”), a wholly owned subsidiary of Scientex Berhad (“Scientex”) i..e the disposal of GW Plastics’ 100% equity interest in Great Wall Plastic Industries Berhad (“GWPI”), and GW Packaging Sdn Bhd (“GW Packaging”) to Scientex Packaging for a total cash consideration of RM283.20 million (“Proposed Disposals”) and a proposed distribution of the cash proceeds arising from the Proposed Disposals to all shareholders of GW Plastics (“Proposed Distribution”), which was announced on 3.10.2012. Yeoh at the material time was a non-independent non-executive director of GW Plastics. On 1 June 2017, Chua Choon Chai also entered into a settlement with the SC for the sum of RM78,000.00 when he agreed without admission or denial of liability to settle a claim that the SC was proposing to institute against him for insider trading in the shares of GW Plastics, contrary to section 188(2) of the CMSA. The settlements were reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws, where the sum that Yeoh and Chua were required to disgorge was equivalent to 3 times the difference between the price at which Chua acquired the shares and the price at which the shares would have been likely to have been acquired at the time of the acquisition, if the information had been generally available. The monies recovered will be applied in accordance with section 201(7) of the CMSA.