KUALA LUMPUR (July 31): Securities Commission Malaysia (SC) announced today that it has reprimanded Telent Outdoor (Hong Kong) Technology Co Ltd (Telent), a China-based sports equipment company, and imposed a permanent moratorium on two of its directors for submitting false information.
The move marks the first time the SC imposed a permanent moratorium against a person who has breached securities laws in Malaysia.
The duo are the company's managing director Hui Chi Keung, and his son Hui Tang Tat who is its executive director. The two Hong Kong citizens are promoters of and substantial shareholders of Telent Outdoor.
"The permanent moratorium will bar the two from being a promoter and being involved in any submission for corporate proposals to SC, where they would emerge as a major shareholder of a listed company in Malaysia," the SC said in a statement.
It said the sanction follows the finding that Telent and its two promoters had submitted false or misleading information in an application to the SC for the listing of Telent Outdoor on the Main Market of Bursa Malaysia in 2014.
“SC commends the actions of the independent directors of Telent Outdoor for the unwavering discharge of their duties and responsibilities. The independent directors provided independent oversight on the investigations carried out by the advisers and also fully cooperated with the SC,” the statement added.
It said "their proactive actions are in line with what is expected of independent directors.”
Telent was incorporated in Bermuda on Aug 5, 2013. Its operating subsidiary is Fuxin Telent (Fujian) Outdoor Products Co Ltd, which is principally involved in the design, manufacturing and marketing of outdoor footwear, apparel and equipment in China.
In 2014, Telent submitted a draft prospectus to the SC for its proposed listing on the Main Market to raise capital for expansion.