The company also said it will challenge Bursa Malaysia’s directive to reveal findings from a special independent review conducted by Ernst & Young Consulting Sdn Bhd.
“Bursa Malaysia has no power to instruct the company to do so or to suspend its trading as the suspension lacked procedural fairness and violated the rules of natural justice,” it said in a statement today.
“Serba Dinamik will seek, among others, a declaration that the directives given by Bursa as well as the suspension of trading are null and void and are of no effect.”
Serba Dinamik said it wanted to restrain Bursa Malaysia from “taking any action in whole or in part from announcing the factual findings update, and from appointing any person to act as a special auditor of the company, to review or investigate the affairs, together with an order for the removal of the suspension of trading of the securities”.
“The legal suit questions Bursa Malaysia’s authority to instruct and direct the company to take any steps, action or engage in any conduct which may contravene or otherwise may not comply with several provisions of Bursa’s own MMLR (Main Market Listing Requirements), namely paragraph 9.03 and paragraph 9.35A,” it said.
Company chairman Mohamed Ilyas Pakeer Mohamed said Bursa Malaysia had not given any information to Serba Dinamik on the breaches according to the MMLR, and it had no reason to make a special independent review directive.
“Therefore, the actions taken against Serba Dinamik were grossly in excess of authority,” he said.
“In addition, we contest Bursa Malaysia’s power, purportedly pursuant to MMLR, in directing us to appoint EY as a special auditor to conduct a ‘special independent review’ on top of challenging EY’s status as an auditor under the MMLR and Companies Act 2016.
“Bursa cannot exercise a purported power to direct Serba Dinamik to appoint a person who is not an auditor, and to announce any material prepared by a person who is not an auditor to follow any auditing standards or other engagement standards issued by the accounting and audit profession.”
The company also said it would seek an interim injunction pending the full and final disposal of the originating summons.
The originating summons, filed on Nov 3, resulted from Bursa Malaysia’s intervention in Serba Dinamik’s auditing concerns that arose in late May.
The company said it was seeking the injunction to protect the interests of its shareholders “as many are losing money and margin calls”.
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