Former CEO gets a day in jail, fined RM2.5mil for misleading statement to Bursa

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KUALA LUMPUR: Former Transmile Group Bhd chief executive officer Gan Boon Aun has been sentenced to a day in jail and fined RM2.5mil by a Sessions Court here for making a misleading statement in the company's quarterly report to Bursa Malaysia in a case that has spanned over a decade.

Sessions Court judge Hasbullah Adam ordered Gan to serve 18 months in jail if he fails to pay the fine.In 2007, Gan was charged by the Securities Commission for abetting Transmile in making a statement that was misleading in a material particular relating to the company’s revenue in its quarterly report on unaudited consolidated results for the financial year ended Dec 31,2006.

According to the alternative charge sheet, Gan was charged in his capacity as a director of Transmile Group, and the offence was committed at the Bursa Malaysia, Exchange Square, Bukit Kewangan here between Feb 14 and Feb 15,2007. The charge was framed under Section 122B of the Securities Industry Act 1983 read together with Section 122 of the same Act.In June 2011, Gan made an application to the High Court to refer a constitutional question on the validity of Section 122 of the SIA. He argued that the provision was inconsistent with Article 5 of the Federal Constitution.

In 2016, the High Court referred the constitutional questions to the Federal Court for determination. In March 2017, the Federal Court ruled in a landmark decision that the principal officers and directors are to be held liable if the companies they represent furnish misleading information.Article type: metered

 

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