KUALA LUMPUR (July 15): A&M Realty Bhd has been publicly reprimanded by Bursa Malaysia after a subsequent alteration of the company’s dividend entitlement.

In a statement today, Bursa said the alteration was in contravention of paragraph 8.26(1) of the Bursa Malaysia Securities Main Market Listing Requirements (Main LR).

“Paragraph 8.26(1) of the Main LR expressly states that once the dividend had been declared, a listed issuer must not make any subsequent alteration to the dividend entitlement,” the regulator added.

A&M Realty had on April 29, 2015 proposed a final dividend of 15 sen per share for the financial year ended Dec 31, 2014.

However, it had the next day made an amended announcement of the proposed dividend to 1.5 sen per share.

“[We do] not condone any subsequent alteration to the dividend entitlement which is expressly prohibited and view such contravention seriously as it affects market integrity.

“Investors and shareholders would have relied upon the company’s declaration of dividend towards their investment decision,” Bursa said.

While it did not find any of A&M Realty’s directors to have caused or permitted the breach, Bursa highlighted that it was the duty of the directors to maintain appropriate standards of responsibility and accountability in ensuring compliance of the Main LR.

Among the directors listed in the announcement were A&M Realty’s founder and chairman Datuk Ng Boon Thong @ Ng Thian Hock, executive deputy chairman Datuk Setia Abdul Halim Abdul Rauf, and managing director cum chief executive officer Datuk Ambrose Leonard Ng Kwee Heng.

A&M Realty (fundamental: 2.3, valuation: 2.2) shares closed down 0.96% to RM1.03 today, with a market capitalisation of RM379.67 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)