Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on December 18, 2019

KUALA LUMPUR: Datin Chan Chui Mei, a former deputy managing director (MD) of Stone Master Corp Bhd, has been found guilty of causing a RM11.54 million wrongful loss to the company.

In a statement, the Securities Commission Malaysia (SC) said the High Court here yesterday ruled that the regulator had successfully proven its case against Chan.

In delivering his judgement, Justice Mohamed Zaini Mazlan ordered Chan to pay the SC RM11.54 million, to be held in trust for Stone Master. Chan was also ordered to pay a RM1 million civil penalty and is barred from being a director of a public listed company for five years.

“Based on the facts of the case, Stone Master had entered into agency agreements with 23 foreign companies for exclusive rights to market and promote products belonging to these foreign companies.

“In consideration of these exclusive rights, Stone Master paid the purported local representatives of these companies a sum of RM11.59 million in the form of a non-refundable deposit,” said the SC.

“The SC had shown that of the RM11.59 million, RM11.54 million was subsequently paid by the purported local representatives into Chan’s personal account, thereby causing a wrongful loss to Stone Master,” it added.

Chan was found guilty of breaching Section 317A of the Capital Markets and Services Act 2007, which states that a director or an officer of a listed corporation shall not do anything with the intention of causing a wrongful loss to the listed corporation.

In October 2016, the SC filed a suit against Chan for allegedly causing a wrongful loss to Stone Master, which was delisted on May 23.

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