KUALA LUMPUR (Dec 7): Supermax Corp Bhd is applying for leave from the court to allow its now former group managing director Datuk Seri Stanley Thai to be re-appointed as a director or to act in such a capacity for the group.
In a filing with Bursa Malaysia today, Supermax said its board of directors, after having considered advice from the group’s solicitors, has authorised its lawyers to make the application under Section 198(4) of the Companies Act 2016, and Section 318 (1) of the Capital Markets and Services Act 2007.
According to the provision in the Companies Act, Thai may be allowed to be a director with the leave of the court even if he has been disqualified due to a conviction.
In a separate filing, Supermax said Thai has relinquished his post as MD on Nov 24, in accordance with Paragraph 15.05 of the Main Market Listing Requirements of Bursa Malaysia Securities Bhd. The provision states that an individual who has been convicted by a court of law for an offence under securities laws or corporations laws cannot be appointed or allowed to act as a company director. The ban is to be enforced within five years of the date of the individual’s conviction, or from the date of release from prison if the individual is sentenced to jail.
The company also stressed that the business’ position remains intact and that the management and board of directors stand firm in growing the business, going forward.
On Nov 24, the Kuala Lumpur Sessions Court sentenced Thai to five years’ jail and fined him RM5 million for insider trading when he was the chief executive officer of APL Industries Bhd (APLI). He allegedly communicated non-public information about APLI to former remisier Tiong Kiong Choon, who was also sentenced to five years' jail and fined RM10 million.
Supermax said the court has granted Thai a stay of execution while an appeal has been filed against the conviction and sentence.
Meanwhile, in two other announcements yesterday, Supermax said it has appointed Thai’s daughter Cecile Jaclyn Thai, 29, and his nephew Tan Chee Keong as executive directors, with their appointments to take effect from Jan 2 next year.
Cecile is currently the chief executive officer of Aveo Vision, a division of Supermax Healthcare Inc, while Tan, 39, is currently Supermax Healthcare’s executive vice president.
Since Thai’s conviction on Nov 24, Supermax has lost up to RM144.46 million or 10.68% in market capitalisation. Its shares closed two sen or 1.1% higher at RM1.84 today, valuing it at RM1.21 billion.