Thursday, November 4, 2010

Satang unable to go ahead with probe due to lack of funds

KUALA LUMPUR: SATANG HOLDINGS BHD [] said it was unable to secure funds for Messrs. Ernst & Young to undertake an investigation.

The company said on Thursday, Nov 4 the probe was to have started on Oct 18 had not commenced due to lack of funds.

'The board has in the meantime requested a written quotation from another reputable firm of accountants to undertake the investigation in order to minimise costs and is now awaiting the same,' it said.

On Wednesday, Bursa Malaysia Securities rapped the company for the dissolution of the Audit Committee by the board of directors 'is inconsistent with the requirement to maintain an Audit Committee at all time' in accordance with Paragraph 15.09 (1) of LR.

'Bursa Malaysia also finds the company's rationale to dissolve the Audit Committee as stated in the announcement dated Nov 2,' it said, adding that any vacancy in the Audit Committee can be filled within three months.

The regulator then ordered Satang and its board of director to reinstate and reconstitute the Audit Committee for compliance with paragraph 15.09 of the LR with immediate effect and to furnish Bursa Malaysia documentation evidence which includes minutes of board meeting to confirm the same.

'The board is now advised that the Audit Committee cannot be dissolved. Being so, the board had taken immediate step to reinstate the Audit Committee with immediate effect,' it said.


No comments:

Post a Comment