Kuala Lumpur, 9 September 2022
The Federal Court on 7 September 2022 unanimously dismissed then Deputy Managing Director of Stone Master Corporation Berhad (Stone Master) Datin Chan Chui Mei’s (Chan) application for leave to appeal to the Federal Court. The leave for appeal was in relation to the decision of the Court of Appeal on 3 March 2022, affirming the High Court’s decision in 2019 which ruled Chan had breached securities laws namely causing wrongful loss to Stone Master in March 2016.
The Securities Commission Malaysia (SC) commenced civil action on 23 September 2016 against Chan for breaching sections 179, 317A and 370 of the Capital Markets and Services Act 2007 (CMSA).
Stone Master had entered into agency agreements with 23 foreign companies for the exclusive rights to market and promote their products in Malaysia and Singapore. Stone Master then paid RM11.59 million in the form of non-refundable deposits to the local representatives of the foreign companies. The SC found that RM11.54 million of the deposits were then transferred into Chan’s personal bank accounts.
On 17 December 2019, the High Court ruled in favour of the SC and ordered Chan to pay a total sum of RM12.54 million to the SC comprising the amount wrongfully deposited into her personal bank accounts and civil penalty of RM1 million. In addition, Chan was also barred from being a director of any listed company for five years.
In dismissing Chan’s application for leave to appeal, the Federal Court also ordered Chan to pay costs of RM30,000 to the SC.
SECURITIES COMMISSION MALAYSIA
