Bursa Malaysia Securities Berhad has publicly reprimanded and imposed a fine of RM500,000 on Chean Meng Hee (Chean), the former Executive Director of Advance Information Marketing Berhad for breaches of the Bursa Malaysia Securities ACE Market Listing Requirements.
This comes from the resale of 24,090,500 units of AIM’s treasury shares on 5 October 2021 (Resale) at a discounted price of more than 5% to the weighted average market price for the company’s shares for the 5 market days immediately before
the Resale of RM0.2712 (5-md VWAP). The Resale was executed at a minimum and maximum price of RM0.14 and RM0.21
Bursa Malaysia Securities viewed a contravention of the share buy-back requirements in Chapter 12 of the ACE LR including Rule 12.18 of the ACE LR seriously as the share buy-back requirements are fundamental to safeguard investors’ interest and maintain market integrity in ensuring the share buy-back/resale of treasury shares is conducted in an orderly and fair
manner.
Chean had on 9 October 2021, upon query by the Board, admitted his failure to give clear instruction to the stockbroker pertaining to the Resale to ensure compliance with Rule 12.18 of the ACE LR. Chean had also failed to make any payment/compensate the losses to AIM despite his agreement to do so and the legal action instituted and the court order obtained by the company on 6 February 2024 that he had breached his fiduciary duties, duty of care and statutory duties to the Company and for Chean to pay special damages of RM2,597,665.71.
