KUALA LUMPUR: Bursa Malaysia has publicly reprimanded, and fined Serba Dinamik Holdings Bhd group managing and chief executive officer Datuk Mohd Abdul Karim Abdullah RM15,000, for failing to notify the company secretary within one full market day, of disposing of 107,963,930 million shares of the company.
The shares were pledged by Mohd Abdul Karim to a lender via a loan agreement and on May 9, 2022, there was a disposal of his interest in the shares which represented 2.91 per cent of the total share capital, by way of force-selling.
The disposal was only announced on August 12, 2022.
Bursa Malaysia Securities said Mohd Abdul Karim's explanation that the disposal was carried out without notice to him was unacceptable, as he was and should be aware of the circumstances (including the terms and conditions of the pledge which allowed the lender to force-sell the shares without notice to him) and his default leading to the disposal/force-selling.
It said Mohd Abdul Karim failed to undertake reasonable enquiry and action to ascertain the disposal despite the company secretary's enquiry on May 17, 2022 on whether there was any dealing by him after the announcement of his notice of intention to deal and engagements by Bursa Malaysia Securities vide emails on July 12, 2022 and August 10, 2022,informing him of the disposal, and requiring him to comply with the requirements of Chapter 14 of the main listing requirements respectively, which demonstrated a clear lack of regard of the main listing requirements and failure in the discharge of his duties.
Bursa Malaysia Securities' views the above contravention seriously and reminded Mohd Abdul Karim of his responsibility to maintain appropriate standards of corporate responsibility and accountability to the shareholders and investing public.
