Transmile

Topics: Kuala Lumpur, Malaysia, Corporate governance Pages: 3 (444 words) Published: June 20, 2013
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SATURDAY, 29 OCTOBER 2011
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Former Transmile directors sentenced to jail and fined
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The Kuala Lumpur Sessions Court today found two former independent directors of Transmile Group Berhad guilty under section 122B(b)(bb) of the Securities Industry Act 1983, for having authorized the furnishing of a misleading statement to Bursa Malaysia in Transmile's 'Quarterly Report on Unaudited Consolidated Results for the Financial Year Ended 31 December 2006'.

The misleading statement was with respect to the unaudited revenue figures which were reported to the stock exchange for both the 4th quarter of 2006 as well as the cumulative period for 2006. 

The directors, Jimmy Chin Kim Feung and Shukri Sheikh Abdul Tawab, were at the material time, in February 2007, members of the Audit Committee (AC) of Transmile and members of Transmile's Board of Directors. They were charged in 2007 and claimed trial. The trial commenced in 2010 and the Prosecution called 11 witnesses to prove the charge against both accused. Both accused gave sworn evidence in their defence. 

In passing the sentence of one year imprisonment and a fine of RM300,000 (in default six months imprisonment), the Sessions Court Judge, Justice Dato' Jagjit Singh Bant Singh stated that the public interest factor must be given paramount consideration. He said that the Audit Committee is a vital organ of the company and particularly important in the corporate governance of a company. 

The judge emphasised that the AC has specific duties, functions and responsibilities and that the investing public rely on them very much. He said that in this case the evidence showed a blatant disregard of the seriousness of the concerns on the contra transactions when the AC was told by Deloitte that the contra transactions were very unusual and lacked commercial...
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