Bursa fines and reprimands CN Asia and seven of its directors

KUALA LUMPUR: Bursa Malaysia has publicly reprimanded CN Asia Corp Bhd (CNASIA) and seven of its directors for breach of the Bursa Malaysia Securities Main Market Listing Requirements (Main LR).

In addition, the seven directors of CNASIA were imposed total fines of RM225,000, the local bourse said in a statement.

“CNASIA was publicly reprimanded for breach of paragraph 10.13(1)(a), read together with paragraph 8.29(1) of the Main LR for failing to obtain prior shareholders’ approval in respect of the diversification of the business of CNASIA Group to include moneylending business (Diversification), pursuant to the share sale agreement entered on April 15, 2021 to acquire 100% of the issued share capital in Southborn Capital Sdn Bhd (SCSB).

“CNASIA only obtained its shareholders’ ratification of the diversification on June 24, 2022.”

According to Bursa Malaysia, chairman Datuk Seri Zulkifli Abdullah, deputy chairman Datuk Seri Tan Choon Hwa, director and audit and risk management committee chairman Low Yong Heng, director and audit and risk management committee member Tania Scivetti, and director and audit and risk management committee member Nadanarajah Ramalingam were each publicly reprimanded and fined RM25,000.

Meanwhile, executive directors Tengku Shamsulbhari Tengku Azman Shah and Chang Chee Ching were each publicly reprimanded and fined RM50,000.

Bursa Malaysia also noted that Zulkifli, Low and Scivetti have resigned from the company.

“The finding of breach and imposition of the above penalties on CNASIA and its directors were made pursuant to paragraph 16.19 of the Main LR upon completion of due process and after taking into consideration all facts and circumstances of the matter including the materiality of the breach and the roles, responsibilities, knowledge, involvement and conduct/ action/inaction of the directors.

“Bursa Malaysia views the contravention seriously as the requirement to obtain shareholders’ prior approval for material diversification in operations is fundamental to protect the interest of shareholders and ensure the shareholders were kept informed of all facts or information and allow them an opportunity to consider, in a timely manner, such diversification which might affect their interest.”

Bursa Malaysia added that it had also reminded CNASIA and its board of directors of their responsibilities to maintain the appropriate standards of corporate responsibility and accountability to its shareholders and the investing public.