Judicial review against the Securities Commission in relation to the Audit Oversight Board’s inquiry under section 31W and Notice to Show Cause under section 31(Z)(5) of the Securities Commission Act against Lee Kok Wai

The Court of Appeal had on 26 August 2014 dismissed Lee Kok Wai (“LKW”) and Crowe Horwarth (“CH”)’s appeal against decisions by the High Court dismissing the 1st and 2nd judicial review leave applications filed against the SC by LKW and CH. The judicial review applications were in relation to AOB’s inquiry against LKW in his capacity as engagement partner in the audit of Silver Bird Group Bhd’s financial statement for the financial year ended 31 October 2010 (“Inquiry”).

Following this LKW and CH filed a Notice of Motion for leave to appeal before the Federal Court against part of the Court of Appeal’s decision on 26 August 2014 (“leave to appeal to the Federal Court”).

LKW and CH had also on the 2 October 2014, filed a Notice of Motion against the SC at the Court of Appeal for, among others, an order that notification/publication and enforcement of any decision made in the Inquiry by AOB be stayed pending the final hearing and adjudication of the leave to appeal to the Federal Court. The Notice of Motion for stay was dismissed with costs by the Court of Appeal on 5 January 2015.

LKW and CH have forwarded to the Federal Court on 28 January 2015 their Notice of Discontinuance of their application for leave to appeal to the Federal Court.

A 3rd application for leave for judicial review was filed against the SC on 2 December 2014  in respect of AOB’s issuance of the Notice to Show Cause to LKW under section 31Z(5) of the Securities Commission Act 1993 (“SCA”). On 15 January 2015, the High Court dismissed the said application with costs.

A notice of appeal had been filed by LKW and CH against the decision of the High Court of 15 January 2015. LKW and CH had also filed an application at the High Court for, among others, an order that the publication and enforcement of AOB’s decision on the Inquiry be stayed and/or deferred pending the determination of LKW and CH’s appeal against the decision of the High Court. The hearing for the stay application is scheduled on 16 February 2015.