Wednesday, June 12

Bursa Malaysia Securities Imposes RM7.2 Million Fines on Serba Dinamik Directors

In a significant move, Bursa Malaysia Securities has publicly reprimanded Serba Dinamik Holdings Bhd and its directors, slapping them with fines totaling RM7.2 million.

The penalties, ranging from RM355,200 to RM1,376,000, underscore the severity of breaches in compliance with Bursa Malaysia Securities Main Market Listing Requirements (Main LR).

The reprimand follows a series of violations of Bursa Malaysia Securities Main LR by Serba Dinamik and its directors, with fines imposed based on the failure of directors to prevent these breaches.

Foremost among the breaches was Serba Dinamik’s failure to promptly announce the Factual Findings Update (FFU) in accordance with Bursa Malaysia Securities’ Directive.

The FFU, a result of an independent review by Ernst & Young Consulting Sdn Bhd into Serba Dinamik’s financial affairs, carried material findings. The company’s delay in announcing these findings resulted in the suspension of the trading of its securities.

Financial reporting breaches, including a delay in issuing the Annual Report 2021 (AR 2021) and inaccuracies in the Quarterly Report for the 18-month financial period ending 30 June 2021 (QR 30 June 2021), further compounded the situation for Serba Dinamik.

Disclosures lapses were also notable, encompassing defaults in payment, disclaimers of opinion in the Auditors’ Report, and the First Announcement related to Practice Note 17 (PN17). The directors faced censure for failing to make immediate announcements, jeopardizing transparency and potentially harming shareholders and investors.

The board of Serba Dinamik was additionally reprimanded for untimely disclosure of material litigations and a winding-up petition, highlighting a lack of diligence in meeting the company’s obligations to keep the market informed.

The fines imposed on directors were proportionate to their roles and responsibilities. Group MD/CEO, Datuk Mohd Abdul Karim Abdullah, and Executive Director, Syed Nazim Syed Faisal, bore the highest fine of RM1,376,000. Bursa Malaysia Securities attributed the failure to ensure compliance with Main LR to these key figures, emphasizing their oversight in escalating material litigations to the board in a timely manner.

The fines are not only financial but also include public reprimands, noting the gravity of the directors’ oversights.

Bursa Malaysia Securities, in its statement, underscored the seriousness of the contraventions, emphasising the importance of timely and accurate disclosure of financial information and maintaining high standards of integrity, accountability, and corporate governance.

The regulator stressed the mandatory nature of adherence to directives for listed companies and their directors, emphasizing the responsibility to shareholders and the investing public.

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