Bursa reprimands Nakamichi, fines former executive director RM1.43 mil

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KUALA LUMPUR (Oct 8): Bursa Malaysia Securities Bhd has reprimanded Nakamichi Corporation Bhd and its former executive director Lo Man Heng for breaches of listing requirements, of which Lo was fined RM1.43 million as at Oct 8, 2014.

In a press statement today, the bourse explained that Nakamichi was reprimanded for failing to announce its financial statements within the stipulated timeframes.

The unfurnished financial results were Nakamichi’s second quarterly report ended June 30, 2013, third quarterly report ended Sept 30, 2013, fourth quarterly report ended Dec 31, 2013, and its annual audited accounts for financial year ended Dec 31, 2013.

Meanwhile, Bursa added that Lo was found to have breached paragraph 16.13(a) of the main listing requirements for causing Nakamichi’s failure to announce the financial statements.

“A public reprimand and fine of RM2,000 per market day for each delay of the financial statements (subject to a maximum fine of RM500,000 for each financial statement) — until the relevant accounts of the subsidiary, Tamabina Sdn Bhd, was furnished to Nakamichi to enable preparation and finalisation of the second quarterly report 2013 — were imposed on Lo Man Heng,” it said.

"Nakamichi has an obligation to ensure timely submission of all its financial statements, including establishing all the necessary controls and governance to enable it to adhere to its obligations under the Main listing requirements at all material time," said Bursa.

It is worth noting that Nakamichi has been embroiled in a legal tussle for over a year with its 51%-owned subsidiary Tamabina and the latter’s directors Lo and Lai Yun Fung, after they failed to hand over Tamabina’s management accounts.

Lo and wife Lai, together with Lo’s sister Lo Shwu Fen, collectively control a 49% equity stake in Tamabina. Tamabina holds a concession to log timber from a 15,900 ha tract at the Pinangah Forest Reserve in Sabah.

Without the management accounts, Nakamichi could not submit its results for the second quarter ended June 30, 2013, within the time frame set by Bursa. Consequently, the group’s shares were suspended since last September.

Lo was removed as Nakamichi’s chief executive officer at an extraordinary general meeting held on July 29, after See Too Chan and husband Goh Kheng Peow filed counterclaims at the High Court on July 3 last year.

See and Goh, who own a 32.94% stake in Nakamichi, filed the counterclaims, after receiving a demand notice on June 14 from Lo and Tamabina, for the recovery of RM4.4 million and RM7.38 million respectively from Nakamichi.