KUALA LUMPUR (Oct 21): Bursa Malaysia Securities Bhd has publicly reprimanded London Biscuits Bhd (in liquidation) and its former chief executive officer (CEO) and executive director (ED) Datuk Seri Liew Yew Chung for contravening the exchange’s Main Market listing requirements (Main LRs).
Bursa Malaysia said in a statement today that Liew was also imposed with total fines amounting to RM200,000.
According to the local exchange operator, London Biscuits was publicly reprimanded for breaches of the following Main LRs:
First, paragraph 9.19A(1)(a) and (b) of the Main LR for failing to make an immediate announcement on the defaults in payment of various credit facilities by the company and its subsidiary, as set out in the announcements on July 3 and 20, 2019, Sept 24, 2019, and Nov 6, 12 and 20, 2019.
Second, paragraph 9.03(1) read together with paragraph 9.04(f) of the Main LR for failing to make an immediate announcement on the litigations involving the company and four lenders as set out in the announcements on July 1, 2019 and Sept 17, 2019.
Third, paragraph 9.35A(1)(a) of the Main LR for failing to ensure that the announcements dated July 1 and 3, 2019 vis-à-vis the representations of the financial and operational impact of the litigation by/default in payment to The Bank of Nova Scotia Bhd were factual, clear, unambiguous, accurate, succinct and contained sufficient information to enable securities holders and investors to make informed investment decisions.
"And fourth, paragraph 9.19A(3) of the Main LR read together with paragraph (j) of Part H(A), Appendix 9A for failing to ensure that the announcement dated July 3, 2019, including a statement as to whether London Biscuits was solvent," it said.
Bursa Malaysia said notwithstanding that the company had been de-listed on Dec 1, 2020, the breaches were committed while the company was listed on the official list of the local exchange.
On the fines imposed, it said that Liew, being the CEO and ED of the company at the material time (appointed on Dec 27, 1993 and resigned on Sept 13, 2019), was found to have breached paragraph 16.13(b) of the Main LR for permitting knowingly or where he had reasonable means of obtaining such knowledge, (for) London Biscuits to commit the above breaches.
"Bursa Malaysia Securities views the contraventions seriously as the requirement to make an immediate announcement of material default in payment of credit facilities and litigation is fundamental to enable investors to make informed investment decisions concerning the listed issuer’s financial condition.
"In addition, the numerous delays in making an immediate announcement on the defaults in payment and litigations displayed blatant disregard of the Main LR and reflected poor governance of the company," it said.