Court Of Appeal Malaysia jails former independent directors of Transmile Group Bhd for misleading disclosures

SFC fines

The Securities Commission Malaysia just announced that the Court of Appeal has unanimously dismissed the appeal by the former independent directors of Transmile who were members of its Audit Committee for having knowingly authorised the furnishing of a misleading statement to the stock exchange.

Shukri Sheikh Abdul Tawab, 53, and Jimmy Chin Keem Feung, 52, were found guilty for knowingly authorising the furnishing of a misleading statement to Bursa Malaysia in Transmile Group Bhd quarterly report on unaudited consolidated results for the financial year ended 31 December 2006.

The misleading statement was with respect to the unaudited revenue figures which were reported to Bursa Malaysia for both the 4th quarter of 2006 as well as the cumulative period for 2006.

The Sessions Court had, in 2011, convicted and sentenced Shukri Sheikh Abdul Tawab and Jimmy Chin Keem Feung to one year imprisonment and a fine of RM300,000 (in default six months imprisonment). The High Court had, in 2015, affirmed their conviction and sentence imposed by the Sessions Court.

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