KUALA LUMPUR (Oct 3): The Securities Commission Malaysia (SC) is suing two individuals for insider trading involving shares of GW Plastics Holdings Bhd.
 
The civil suit against GW Plastics former chief executive officer Lim Kok Boon and Cheah Mean Har was filed in the High Court on Sept 28, SC said in a statement today.
 
The commission is seeking a disgorgement of three times the profits made as a result of the insider trading, and a civil penalty of RM1 million from each of them.
 
SC in its suit claims Lim had communicated material non-public information to Cheah, in breach of section 188(3)(a) of the Capital Markets and Services Act. Cheah had then allegedly purchased GW Plastics shares, while in possession of the information in breach of section 188(2)(a) of the Act.
 
The material information relates to a proposed share sale agreement between GW Plastics and Scientex Packaging Film Sdn Bhd, and a proposed distribution of cash proceeds arising from the agreement to shareholders of GW Plastics. The information was announced by GW Plastics to Bursa Malaysia on Oct 3, 2012.
 
GW Plastics, a PN17 status company, announced the sale of its plastics business to the Scientex Bhd subsidiary for RM283.20 million.
 
In 2015, GW Plastics changed its name to MCT Bhd following the completion of its reverse takeover by MCT Consortium Bhd.