Bursa Securities raps Satang, fines 6 directors RM180,000

KUALA LUMPUR: Bursa Malaysia Securities Bhd has publicly reprimanded SATANG HOLDINGS BHD [] for breaching the Main Market Listing Requirements and it also rapped and fined its directors RM180,000.

The regulator said on Thursday, June 30 Satang had breached the rules when it had, during a board of directors meeting on Nov 1, 2010, dissolved its audit committee entirely with immediate effect.

Bursa Securities said Satang then clarified the dissolution was because of the resignation of its audit committee member with the Malaysian Institute of Accountants qualification. However, it said the dissolution was undertaken despite Satang having up to three months from the resignation to fill the vacancy.

It said the directors had approved the dissolution and had breached the listing requirements for “permitting knowingly or where they had reasonable means of obtaining such knowledge, Satang to commit the above breach”.

The six directors, who were fined RM30,000 each, were its chairman and executive director Major (R) Jamaludin Hasan (appointed July 3, 2009); the then managing director Malim Mohamed (who resigned on Jan 1, 2011) and the then executive director Tajudin Talib (who resigned on Jan 5, 2011).

The others were its director Lotfi Miskam (appointed Aug 17, 2010), director Azhar Azizan @ Harun (appointed Aug 28, 2010) and independent director Dr Mohamad Salmi Mohd Sohod (appointed Sept 20, 2010).

Bursa Securities stated that it was that “the requirement for a listed company to maintain an audit committee at all times is one of the fundamental obligations of companies listed on the Official List of Bursa Securities”.

It pointed out that an audit committee plays a crucial role in the corporate governance of a listed company and protecting the interest of shareholders via the assessment of the risks and control environment of a listed company, overseeing the financial reporting, evaluating the internal and external audit process and reviewing conflict of interest situations and related party transactions.

“As such, whilst Satang had reconstituted its audit committee on Nov 3, 2010 (that is two market days later) in accordance with the directive of Bursa Securities, Bursa Securities views the breach seriously in view of its significance towards market integrity,” it said.

wow ... but y no1 k abt recent ipo tat holland leh ?