KUALA LUMPUR: Scan Associates Bhd chief executive officer Datuk Dr Norbik Bashah Idris has resigned from his post with the Guidance-Note 3 (GN3) company. Norbik is also the founder of the company.

In a filing with Bursa Malaysia yesterday, Scan said Norbik, 56, resigned due to personal reasons.

The company has been in the news of late due to its dispute with Bursa Securities on its GN3 classification. GN3, if triggered, will rise to an obligation for a listed corporation to comply with the provisions of the guidance note.

To recap, Scan triggered two of the three criteria that would have prompted the classification. First, it incurred a loss of RM7.1 million in its financial year ended December 2014 (FY14), which exceeded its shareholders’ funds of RM6.2 million. The results were released on Feb 27. 

Second, its aggregate losses for two consecutive financial years exceeded its shareholders’ funds.

Based on the listing requirements, Scan Associates’ GN3 status was triggered when the full results for FY14 were announced on Feb 27.

However, Scan on April 27 announced the change of its financial year end to June 30; thus, it claimed it did not trigger GN3.

The company, which offers exchange-related facilities such as listing, trading and depository services, filed a lawsuit against Bursa Securities as it disagreed with the directive issued and to seek damages from the regulator. 

It was granted an ad interim injunction by the High Court on May 11 to restrain Bursa from implementing the GN3 classification.

But it fell into GN3 territory on May 18 after the court dismissed its application for a further injuction. Scan (fundamental: 0.15; valuation:0) shares closed up two sen or 22.22% yesterday at 11 sen with a market capitalisation of RM21 million.

This article first appeared in The Edge Financial Daily, on July 1, 2015.