Insider trading

Toh Kai Fatt

On 13 September 2021, a civil action was initiated against Toh Kai Fatt (“Toh”) for insider trading, a breach under section 188(2) of the Capital Markets and Services Act 2007 (“CMSA”).

The SC sought, among others, the following:

• A declaration that Toh had contravened section 188(2)(a) of the CMSA when he acquired shares of HPI Resource Bhd (“HPI”) while in possession of material, non-public information relating to the acquisition of HPI by Oji Paper Co Ltd;
• An order that Toh pays to the SC a sum of RM2,363,122.50 which is equal to three (3) times the profit made by Toh;
• An order that Toh pays to the SC a civil penalty of RM1,000,000.00;
• An order that Toh be removed of chief executive, directorship and management positions in any public listed companies (“PLCs“) in Malaysia;
• An order that Toh be barred from being appointed as a chief executive or director and from being involved in the management, directly or indirectly of any PLC for a period of five (5) years from the date of judgment;
• An order that Toh be restrained from trading in any securities on Bursa Malaysia for a period of five (5) years from the date of judgment;
• Interest; and
• Costs.

On 13 April 2023, the Kuala Lumpur High Court declared in favour of the SC against Toh Kai Fatt. The High Court granted the following reliefs to the SC:

• A declaration that Toh had breached section 188(2)(a) of the CMSA;
• A payment of the sum of RM2,363,122.50 which is equal to three (3) times the profit made by Toh;
• Civil penalty of RM250,000;
• Interest at the rate of 5% per annum on the judgement sums above from the date of judgement until full and final realisation thereof;
• An order that Toh is to be barred from being a chief executive or director and from being involved in the management, directly or indirectly, of any public listed companies in Malaysia for a period of 5 years from the date of judgment;
• An order that Toh is to be restrained from trading in any securities on Bursa Malaysia for a period of 5 years from the date of judgment; and
• Costs of RM100,000.00.