KUALA LUMPUR: Bursa Malaysia Securities Bhd has publicly reprimanded and imposed a fine of RM500,000 on Advance Information Marketing Bhd
’s (AIM) former executive director Chean Meng Hee for breaches of its ACE Market Listing Requirements (ACE LR).
In a statement today, it said Chean, who was appointed as AIM’s executive director on Sept 3, 2021, had breached Rule 16.13(a) of the ACE LR for causing AIM to breach the provisions of the ACE LR.
This includes Rule 12.18(b) of the ACE LR in respect of the resale of 24.09 million units of AIM’s treasury shares on Oct 5, 2021 (resale) at a discounted price of more than five per cent to the volume-weighted average market price for the company’s shares for the five market days immediately before the resale of RM0.2712 (five-market day VWAP).
According to Bursa Malaysia Securities, the resale was executed at a minimum and maximum price of RM0.14 and RM0.21 respectively, representing a discount of 22.6 per cent and 48.4 per cent to the five-market day VWAP.
Chean has also breached Rule 12.20 of the ACE LR for only making an announcement of the resale to Bursa Malaysia Securities on Oct 6, 2021; and Rule 9.35(1)(a) of the ACE LR in respect of the maximum resale price of RM0.30 stated in the announcement on Oct 6, 2021 and the minimum resale price of RM0.149 stated in the amended announcement on Oct 8, 2021 which were inaccurate.
"All listed companies must establish robust internal controls and supervision to ensure that the share buy-back requirements are not abused and share buy-back is undertaken in accordance with these requirements.
"These controls should be adequately designed, effectively implemented and monitored to prevent and detect any abuse or non-compliance of the share buy-back requirements.
"All directors must also maintain the highest standards of integrity, accountability, corporate governance and responsibility,” it said. - Bernama
