Kuala Lumpur, 16 April 2009
SC charges two directors of listed company for misleading statements to stock exchange
The Securities Commission (SC) today charged two individuals for knowingly authorising the provision of a misleading statement by MEMS Technology Berhad (MEMS) to Bursa Malaysia Securities Berhad (Bursa). MEMS is listed on the MESDAQ market of Bursa Malaysia.
Ooi Boon Leong, 48, a substantial shareholder and director of MEMS was charged together with Ronnie Tan Yeow Teck, 48, who was at the material time an executive director and Chief Financial Officer of the company.
The misleading statement was in relation to the MEMS’ reported revenue of RM73,416,000 which was contained in its unaudited Condensed Consolidated Income Statements for the twelve-month period ended 31 July 2007.
MEMS’ audited Income Statements for the same period was later announced on 24 April 2008 containing a disclaimer by the company’s former statutory auditors, Messrs. KPMG.
The criminal charges were initiated under section 122B(b)(bb) of the Securities Industry Act (SIA) 1983. Upon conviction, both accused persons are liable to a fine not exceeding RM3 million or imprisonment for a term not exceeding 10 years, or both.
Both men were released on bail of RM200,000 with two sureties each, on the condition their passports be surrendered to the Court.
Judge Puan Rosbiahanin Arifin fixed their trial to be jointly heard on 5 October 2009.
This is the second charge under section 122B of the SIA 1983 that the SC has brought to court this year. Earlier in March, Tan Chin Han, the former chief executive officer and executive director of Welli Multi Corporation Berhad, was charged for knowingly authorising the provision of a misleading statement to Bursa regarding Welli Multi’s revenue.