Wednesday, August 3, 2011

Bursa Securities raps Mangotone, fines four EDs RM300,000

KUALA LUMPUR: Bursa Malaysia Securities Bhd rapped Mangotone Group Bhd and six of its directors for breaches of the Listing Requirements.

It said on Wednesday, Aug 3 that it had fined the former managing director Ahmad Akmal Hamzah and three other executive directors a total of RM300,000. He was appointed on Nov 17, 2008 and resigned on June 30, 2009.

The breaches were committed prior to the de-listing on Sept 8, 2010.

Bursa Securities publicly reprimanded the company for failing to announce immediately when Mangotone and its subsidiaries defaulted in the payments of credit facilities.

It said the explanation that no announcement was made on the defaults in payment of the various banking facilities so as to avoid intervention from Mangotone's creditors in blocking/challenging the company's application for a restraining order under section 176 of the Companies Act 1965 was not acceptable.

It added that the inaction did not absolve Mangotone's obligation to make an immediate announcement of the defaults in payment in accordance with the Listing Requirements and the clear requirements under Guidance Note 5.

Bursa Securities said the directors had breached the Listing Requirements for allowing the breaches to be committed.

It said Ahmad Akmal and Raja Abdullah Raja Baharudin were informed and were aware of the defaults in payment and had the responsibility to notify and advise the board of directors of the defaults and immediate disclosure of the same.

'Their failure to do so indicated lack of proper discharge of their duties,' it said. Both were publicly reprimanded and fined RM100,000 each.

It also said that while Nik Wel Nik Wan and Ali Yaacob were newly appointed as executive directors on June 30, 2009, they were aware of material default in payment of the collateralised loan obligation (CLO) loan since July 22, 2009.'' Both were publicly reprimanded and fined RM50,000 each.

It said that they had failed to discharge their responsibility to ensure the proper discharge of Mangotone's obligations including ensuring immediate notification to the board of directors and disclosure of the default.

Bursa Securities said while Zulqaisar Hamidin and Pow Kim Guan were the non-executive directors, their mere reliance on the executive directors with regards to compliance of the Listing Requirements by Mangotone was unacceptable particularly as they were or should be aware of the defaults in payment since July 28, 2009 when they approved the proposed scheme of arrangement under section 176 of the Companies Act 1965 whereby they were informed that the company had defaulted on its loans.



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