Civil Action in 2020

No.

Offence

Defendants

Brief facts of the case

Outcome

Outcome of Civil Action Taken

1.

Insider trading

Tan Giap How (Tan)

On 12 July 2019, a civil action was initiated against Tan for breach of section 188(3)(a) of the Capital Markets and Services Act 2007 (CMSA).

In respect of the acquisition of Hirotako Holdings Berhad (Hirotako) shares by Dato’ Lim Lean Heng, the SC sought from Tan, among others, the following:

  • payment of the sum of RM800,280.00 which is equivalent to 3 times of profit made by Dato’ Lim Lean Heng
  • a civil penalty of RM1,000,000.00
  • that Tan be restrained from trading in any counter on Bursa Malaysia for a period of five (5) years from the date so ordered by the court

As for the acquisition of Hirotako shares by Ng Ee Fang, the SC sought from Tan, among others, the following:

  • payment of the sum of RM578,640.00 which is equivalent to 3 times of profit made by Ng Ee Fang
  • a civil penalty of RM1,000,000.00
  • that Tan be restrained from trading in any counter on Bursa Malaysia for a period of five (5) years from the date so ordered by the court

On 9 March 2020, the High Court recorded a consent judgment between SC and Tan and ordered among others:

  • that there is a breach of section 188(3)(a) of the CMSA by Tan as acknowledged by Tan
  • that Tan pays to the SC a sum equivalent to 1.5 times of the amount of profit made by Dato’ Lim Lean Heng which amounts to RM400,140.00
  • that Tan pays to the SC a sum equivalent to 1.5 times of the amount of profit made by Ng Ee Fang which amounts to RM289,320.00
  • that Tan pays to the SC a civil penalty of RM200,000.00
  • that Tan, whether by himself, his agent or otherwise howsoever, is restrained from trading in any counter on Bursa Malaysia for a period of five (5) years from the date of the consent judgement
  • that Tan is barred from holding a directorship in a public listed company for a period of five (5) years from the date of the consent judgement.
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