Court of Appeal jails former independent directors of Transmile for misleading disclosures

KUCHING: The Court of Appeal had on Thursday dismissed the appeal by the former independent directors of Transmile Group Bhd (Transmile) who were members of the company’s audit committee for having knowingly authorised the furnishing of a misleading statement to the stock exchange.

The SC in a recent statement said Shukri Sheikh Abdul Tawab, 53, and Jimmy Chin Keem Feung, 52, were found guilty under section 122B(b)(bb) of the Securities Industry Act 1983 for knowingly authorising the furnishing of a misleading statement to Bursa Malaysia in Transmile’s quarterly report on unaudited consolidated results for the financial year ended December 31, 2006.

The capital market regulator noted the misleading statement was with respect to the unaudited revenue figures which were reported to Bursa Malaysia for both the fourth quarter of 2006 as well as the cumulative period for 2006.

The the sessions court in 2011 had convicted and sentenced Shukri Sheikh and Chin 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.

In the meantime, Justice Datuk Ahmadi Nawawi in delivering the decision of the court of appeal stated that there was no merit in the appeal and that the sentence imposed by the sessions court judge commensurate with the offence.