Civil Action in 2019
No. Offence Defendants Brief facts of the case Outcome
Outcome of Civil Action Taken
1. Insider trading Dato Ch’ng Poh @ Ch’ng Chong Poh (“Dato Ch’ng Poh”).

On 26 March 2019, the SC filed a civil suit against Dato Ch’ng Poh. The SC sought, among others:

  • a declaration that Dato Ch’ng Poh had contravened section 188(2)(a) of the CMSA in respect of the acquisition of the shares in Malaysia Pacific Corporation Berhad (“MPAC”) through the trading accounts of Lim Giok Moi (CDS Account Number 073-001-21236807), Tan Kim Lian (CDS Account Number 073-001-40519456) and Yap Lian Far (CDS Account Number 073-001-017494188);
  • an order that Dato Ch’ng Poh pay the sum of RM390,777 which is equivalent to three (3) times the amount of RM130,259 being the difference between the price at which the said shares would have been likely to have been acquired at the time of the trading, if the information relating to the Proposed Joint Venture Project had been made generally available;
  • an order for a civil penalty of RM1,000,000 against Dato Ch’ng Poh;
  • an order that Dato Ch’ng Poh be barred from being a director of any public listed companies for a period of 5 years;
  • an order that Dato Ch’ng Poh be prohibited from any involvement or dealings in any securities on a stock market within Malaysia for a period of 5 years;
  • Interest;
  • Costs.
On 2 April 2019, the High Court recorded a Consent Judgment between the SC and Dato Ch’ng Poh granting the orders which were sought by the SC.     
2.

Insider trading

Dato’ Mohd Nor bin Abdul Wahid (“Dato’ Mohd Nor”)

On 27 February 2019, SC filed a civil suit against Dato’ Mohd Nor. The SC sought, among others:

  • a declaration that Dato’ Mohd Nor had contravened s188(2)(a) CMSA when he acquired 500,000 Three A Resources Berhad (3A) shares on 5 October 2009 whilst in possession of inside information.
  • an order that Dato’ Mohd Nor pay the sum of RM50,201.40 which is equivalent to three (3) times the amount of RM16,733.80 being the difference between the price at which the 3A shares had been acquired and the price at which the 3A shares would have been likely to have been acquired at the time of the acquisition, if the inside information relating to the proposed collective venture between 3A and Wilmar International Limited had been made generally available
  • an order for civil penalty of RM1,000,000.00 against Dato’ Mohd Nor;
  • an order that Dato’ Mohd Nor be barred from being a director of any public listed companies for a period of 5 years;
  • an order that Dato’ Mohd Nor be prohibited from any involvement or dealings in any securities on a stock market within Malaysia for a period of 5 years;
  • Interest;  
  • Costs.

On 14 March 2019, the High Court recorded a Consent Judgment between the SC and Dato’ Mohd Nor granting the orders which were sought by the SC.

3.

Insider Trading

Lim Chiew

On 8 December 2005, the SC filed a civil suit against Lim Chiew, a former independent non-executive director of Magnum Corporation Berhad for insider trading in the shares of Bolton Berhad on 12 July 1999.

The SC sought, among others:

  • A payment of the sum of RM1,242,061.08 which is equivalent to three times the amount of RM414,020.36, being the profits he earned as a result of the breach;
  • Civil penalty of RM500,000.00;
  • Interest;
  • Costs.

On 28 September 2017, the Kuala Lumpur High Court declared that the SC had successfully proven its claim against Lim Chiew. The High Court ordered Lim Chiew to pay the sum of RM1,242,061.08 claimed by the SC and a civil penalty of RM50,000.

Lim Chiew had on 10 October 2017 filed an appeal against the decision of the High Court.

On 7 January 2019, the Court of Appeal allowed Lim Chiew’s appeal and set aside the High Court’s order.
4.

Knowingly authorizing the furnishing of a misleading statement to  Bursa Malaysia

Lei Lin Thai ("Lei")

On 20 February 2019, a civil action was filed against Lei for breach of section 369 of the CMSA by knowingly authorised the furnishing of misleading statement to Bursa Malaysia Berhad. The misleading statement is in relation to a failure to disclose 4 individuals as parties acting in concert in an announcement dated 29 September 2008.

On 8 March 2019, Lei entered into a consent judgment with the SC for the sum of RM2,258,578.53.

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