SC’s sanctions arose as a result of its findings that Trive had failed to perform an impairment assessment on its development expenditure amounting to RM21.1 million as at 31 July 2014 in accordance with the approved accounting standards, namely, the Malaysian Financial Reporting Standards (MFRS) 136: Impairment of Assets. This resulted in Trive and its five directors breaching Regulation 4(1) of the Securities Industry (Compliance with Approved Accounting Standards) Regulations 1999 and section 369(b)(B) of the Capital Markets and Services Act 2007 (CMSA).
Given the severity of the directors’ failure to discharge their duties in ensuring that financial statements submitted to the regulators are true and fair, SC imposed a total fine of RM2.55 million on the directors. Three directors, Wong Kok Seong, Thu Soon Shien and Dato’ Mohamad Amin Mohamad Salleh, who at the relevant time were Audit Committee members, were fined RM539,000 each. Two other directors, Dato’ Sri Dr Pang Chow Huat and Zarul Ikhwan Zarul Ahmad were fined RM465,500 each.
Separately, SC reprimanded Trive and directed Trive to address its financial reporting function. This includes a directive to Trive to appoint an external auditor to assess the adequacy of Trive’s financial reporting function.
SC reminds all listed corporations, directors and chief executive officers to be vigilant and ensure adherence to all relevant financial reporting standards and disclosure requirements at all times. SC views non-compliance with approved accounting standards and disclosure requirements as a serious breach. High standards of financial reporting and disclosures are fundamental in promoting market integrity and enhancing investor confidence.
SECURITIES COMMISSION MALAYSIA
