• Law Siew Ngoh
• Robert Daniel Tan Kim Leng
• Ng Back Heang
• Yap Wee Hin

On 17 August 2023, the SC filed a civil suit against Law Siew Ngoh, Robert Daniel Tan Kim Leng, Ng Back Heang and Yap Wee Hin (“the Defendants”) for breach of section 317A of the CMSA. The SC sought among others:

• A declaration that the Defendants had contravened section 317A of the CMSA;
• An order that the Defendants pay jointly and/or severally a sum of RM5,100,000.00.
• An order that the Defendants be barred from becoming a chief executive, director, or be involved in the management directly or indirectly, of any other public listed company for a period of 5 years;
• Interest; and
• Costs.

On 20 September 2023, parties agreed to settle the suit by way of entering into a consent judgment on among others the following terms:

• A declaration that the Defendants had contravened section 317A of the CMSA;
• An order that the Defendants pay a sum of RM500,000.00 each;
• An order that the Defendants be barred from becoming a chief executive, director, or be involved in the management directly or indirectly, of any other public listed company for a period of 5 years; and
• An order that the Defendants pay costs of RM50,000.00 each.

Previously,  the Defendants faced criminal charges relating to the same transaction. The criminal charges against them were discontinued  upon the instructions of the Attorney General’s Chambers  on 1 November 2023 following the entering of this Consent Judgment and full payment by the Defendants.

The details of the criminal enforcement action can be found in the link below :

https://www.sc.com.my/regulation/enforcement/actions/criminal-prosecution/updates-on-criminal-prosecution-in-2023

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.