SC sues Stone Mas­ter deputy MD for wrong­ful loss

The Sun (Malaysia) - - SPEAK UP -

PETALING JAYA: Se­cu­ri­ties Com­mis­sion Malaysia (SC) has filed a suit against Stone Mas­ter Corp Bhd deputy man­ag­ing di­rec­tor Datin Chan Chui Mei for al­legedly caus­ing wrong­ful loss to the com­pany.

The claim re­volves around Stone Mas­ter's agency agree­ment with 23 for­eign com­pa­nies for ex­clu­sive rights to mar­ket and pro­mote, in Malaysia and Sin­ga­pore, prod­ucts be­long­ing to the for­eign com­pa­nies. Stone Mas­ter paid sev­eral lo­cal rep­re­sen­ta­tives of the 23 for­eign com­pa­nies a sum amount­ing to RM11.59 mil­lion in the form of a non­re­fund­able de­posit. The SC al­leged of the RM11.59 mil­lion, a sum of RM11.54 mil­lion was sub­se­quently paid by the lo­cal rep­re­sen­ta­tives to Chan’s per­sonal ac­count, in breach of sec­tions 179 and 317A(1) of the Cap­i­tal Mar­kets and Ser­vices Act 2007 (CMSA).

Sec­tion 179 pro­hibits a per­son from us­ing any ma­nip­u­la­tive de­vice for the sub­scrip­tion, pur­chase or sale of any se­cu­ri­ties, while un­der Sec­tion 317A, a di­rec­tor or an of­fi­cer of a listed cor­po­ra­tion shall not do any­thing with the in­ten­tion of caus­ing wrong­ful loss to the listed cor­po­ra­tion.

The SC had, on Sept 28, 2016, ob­tained an in­junc­tion from the Kuala Lumpur High Court to re­strain Chan from deal­ing with the RM11.54 mil­lion in her bank ac­counts. In grant­ing the in­junc­tion, the High Court also or­dered her to pro­vide a de­tailed ac­count of the RM11.54 mil­lion, which she had re­ceived.

In the suit, the SC is seek­ing var­i­ous or­ders, in­clud­ing an or­der that Chan, con­tra­vened Sec­tions 179 and 317A of the CMSA; makes resti­tu­tion to per­sons ag­grieved by the con­tra­ven­tion; pays the SC the said sum of RM11.54 mil­lion to be held in trust for Stone Mas­ter and be barred from be­ing a di­rec­tor of a pub­lic-listed com­pany for a pe­riod of five years.

The SC is also seek­ing to im­pose a civil penalty of RM1 mil­lion against Chan. The High Court has fixed Oct 14, 2016 for her to re­spond to the in­junc­tion ap­pli­ca­tion.

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