Former Director Found Liable for Insider Trading
The Kuala Lumpur High Court yesterday rendered its decision, after a full trial, in favour of the Securities Commission Malaysia (“the SC”) in its claim against a former non-executive director for insider trading. The SC, in its press release today said, among others:
“… SC claimed that Lim had breached section 89E (2) of the Securities Industry Act 1983 when he acquired 590,000 Bolton shares on July 12, 1999 while in possession of material non-public information.
“In its decision, the Court agreed with SC that Lim Chiew was in possession of information relating to Bolton’s proposed acquisition of a 30.3% stake in Magnum Corp from Multi-Purpose Holdings Bhd when he made the purchase. The announcement relating to Bolton’s acquisition was subsequently made through the-then Kuala Lumpur Stock Exchange.
“Justice Datin Hajah Azizah Haji Nawawi ordered Lim Chiew to pay a sum of RM1,242,061.08, which amounted to three times the profits he earned as a result of the insider trading. In addition, the High Court ordered Lim to pay the SC a civil penalty of RM50,000 and RM75,000 in costs.”
The SC was represented by partner Mr SM Shanmugam and associates Mr CK Lung and Mr Abang Iwawan Narawi, together with prosecution officers of the SC.
29 September 2017