Bursa Malaysia filed an ex-parte application to seek leave (permission) from the court to proceed with committal proceedings after Serba Dinamik failed to comply with a February 7 High Court ruling that directed the company to reveal the FFU within two market days from the date of the order. — Bernama pic
KUALA LUMPUR, April 14 — Bursa Malaysia Securities Bhd yesterday filed contempt proceedings against Serba Dinamik Holdings Bhd and its directors over the troubled oil and gas outfit’s failure to reveal the fact-finding update of its special independent review, The Edge reported today.
Bursa Malaysia filed an ex-parte application to seek leave (permission) from the court to proceed with committal proceedings after Serba Dinamik failed to comply with a February 7 High Court ruling that directed the company to reveal the FFU within two market days from the date of the order.
The order was made by Judicial Commissioner Wan Muhammad Amin Wan Yahya.
“The defendant had, in defiance of the order, failed, neglected and/or refused to comply with the terms of the order and is therefore interfering with, or obstructing, the due administration of justice,” the regulator said in a statement that accompanied the application.
The documents filed by Bursa Malaysia’s solicitors Messrs Chooi & Company + Cheang & Ariff were sighted by The Edge following a file search done through the e-court system. The application was filed before Wan Muhammad Amin’s court.
The High Court denied the firm’s application for a stay on Monday.
Serba Dinamik was already compounded by the Securities Commission Malaysia (SC) on April 13 for submitting a false statement about its RM6.01 billion revenue for its financial period ended December 31, 2020 (FY20), previously red-flagged by the company’s external auditor KPMG.
In the application, the bourse operator named the company along with its directors Datuk Dr Mohd Abdul Karim Abdullah, Datuk Awang Daud Awang Putera, Datuk Abdul Kadier Sahib, Datuk Syed Nazim Syed Faisal and Noor Azri Noor Azerai as contemnors.
“The first to fifth contemnors, as directors of the defendant (Serba Dinamik) as of February 7, 2022, in defiance of the order, have caused or wilfully permitted or contributed to the defendant’s failure, neglect and/or refusal to comply with the terms of the order and therefore interfering with, or obstructing, the due administration of justice,” Bursa Malaysia was quoted as saying.
The bourse operator noted that Serba Dinamik and its directors clearly had knowledge of the terms of the order based on the group’s February 8 bourse filing of the High Court’s order and terms of the said order.
If found in contempt, the firm could be staring at a fine while the directors themselves could be fined or jailed for their failure to take “all necessary steps as a director” to ensure the group complied with the order, the business paper said.
Bursa Malaysia acted on Serba Dinamik after the latter failed to comply with the bourse operator’s directive to disclose the FFU, conducted by Ernst & Young Consulting Sdn Bhd (EY Consulting).
The regulator first filed an originating summons on November 25, 2021, to compel Serba Dinamik to disclose the FFU of the special independent review dated September 30, 2021 conducted by the same auditor.
The High Court on February 7 decided in favour of Bursa Malaysia and granted the order to compel the release of the FFU. Serba Dinamik subsequently filed an appeal.
Bursa Malaysia said it did not pursue committal proceedings prior to this out of deference to the High Court and the Court of Appeal following the firm’s stay application.
“In view of the train of events and Bursa Malaysia’s deference to the High Court and CoA in administering justice and due process, Bursa Malaysia held its hands in making an immediate application for committal proceedings.
“Bursa Malaysia commenced these committal proceedings as soon as the CoA dismissed [Serba Dinamik’s bid for a stay] on April 11, 2022,” it said.