PETALING JAYA: Bursa Malaysia Securities Bhd has publicly reprimanded and fined Serba Dinamik Holdings Bhd CEO Abdul Karim Abdullah for failure to provide proper notice of the disposal of his interest in the company.
In a press statement today, Bursa said Karim was penalised for breaching paragraph 14.08(d) of the Main Market Listing Requirements.
According to the regulation, a director needs to notify the company secretary within one full-market day in the event of a disposal of the company’s shares.
The company must then immediately announce such notice to the stock exchange. The notice given must include the date of the dealing, its considerations as well as the number of securities involved.
“Bursa Malaysia Securities views the above contravention seriously and reminded Karim of his responsibility to maintain appropriate standards of corporate responsibility and accountability to the shareholders and investing public,” the statement read.
On May 9, 2022, 107.96 million Serba Dinamik shares – representing 2.91% of the company’s equity – held by Karim were disposed of by way of forced-selling.
The shares had been pledged by Karim to a lender pursuant to a loan agreement.
The disposal, however, was only announced on Aug 12, 2022.
Karim claimed that he was not notified of the forced disposal of his shares.
However, Bursa said that this explanation was not acceptable and that he should have been aware of the circumstances as required under the regulations.
“In this regard, there was inaction/failure by him to monitor, ascertain and put in place adequate process and procedures towards compliance of his obligation under paragraph 14.08 of the Main Market Listing Requirements,” said Bursa.
On Aug 16, Serba Dinamik said it might be delisted from the Main Market on Aug 28, after Bursa rejected its application for an extension of time to submit its Practice Note 17 (PN17) regularisation plan.
The oil and gas company filed an appeal against the delisting on Aug 23. It had fallen into PN17 status on Jan 6.
Trading of its securities has been suspended since December 2022 following the company’s failure to submit its 2022 annual report.
The stock was last traded at two sen, giving it a market capitalisation of RM75 million.