SC Wins Suit Against Stone Master Former Deputy MD for Causing RM11.54 million Wrongful Loss
17 December 2019   |   Kuala Lumpur
The High Court today ruled that the Securities Commission Malaysia (SC) has successfully proven its case against Datin Chan Chui Mei, former Deputy Managing Director of Stone Master Corporation Bhd (Stone Master) for causing a RM11.54 million wrongful loss to the company, a breach under s317A Capital Markets and Services Act 2007.

Based on the facts of the case, Stone Master had entered into agency agreements with 23 foreign companies for the exclusive rights to market and promote products belonging to these foreign companies. In consideration of these exclusive rights, Stone Master had paid the purported local representatives of these companies a sum amounting to RM11.59 million in the form of a non-refundable deposit. The SC has shown that of the RM11.59 million, a sum of RM11.54 million was subsequently paid by the purported local representatives to Chan’s personal account, thereby causing wrongful loss to Stone Master.

In delivering his judgement, Justice Mohamed Zaini bin Mazlan ordered Chan to pay the SC the sum of RM11.54 million, which is to be held in trust for Stone Master. In addition, Chan was ordered to pay a RM1 million civil penalty and is barred from being a director of a public-listed company for five years.
SECURITIES COMMISSION MALAYSIA
SC-World Bank-IOSCO Asia Pacific Hub Conference 2019: Enhancing Financial Inclusion through Islamic Finance and FinTech
(From left to right):
  1. Abayomi A. Alawode, Head of Islamic Finance, Finance, Competitiveness and Innovation, The World Bank Group
  2. Datuk Syed Zaid Albar, Chairman of the Securities Commission Malaysia (SC)
  3. Dr. Firas Raad, Country Manager for Malaysia, East Asia and Pacific, The World Bank Group 
  4. Datuk Zainal Izlan Zainal Abidin, Deputy Chief Executive of SC
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