Bursa Malaysia reprimands Kheesan, slaps RM885,000 fine against directors

BURSA Malaysia Securities Bhd has publicly reprimanded Khee San Bhd (Kheesan) and nine of its directors for breaches of the Bursa Malaysia’s Main Market Listing Requirements. 

According to the regulator, nine directors of Kheesan were imposed total fines of RM885,000. 

Kheesan was publicly reprimanded for failing to make an immediate announcement on the defaults in payment of various credit facilities by the company and its major subsidiary, Khee San Food Industries Sdn Bhd.

The company also failed to ensure the representation that the company was solvent and would be able to pay all its debts as and when they fall due within the period of 12 months in the announcements dated Aug 8, 2019; June 23, 2020 (amended on June 24 and 25, 2020); and July 6, 2020.

“The solvency declarations dated Aug 13, 2019 (SD1), and June 29, 2020 (SD2), were accurate and not false or misleading,” Bursa Malaysia said in a statement today.

The company was also reprimanded for corporate governance breach where among others, it failed to ensure that the designation/role of Datuk Seri Liew Yew Chung as non-executive chairman/director was accurate and not false or misleading in the annual report for the financial year ended June 30, 2017, issued on Oct 31, 2017, and the annual report for the 18-month financial period ended Dec 31, 2018, issued on May 8, 2019.

“Bursa Malaysia views the contraventions seriously as the requirements to make an immediate announcement of material default in payment of credit facilities and provide accurate solvency declarations are fundamental to enable investors to make informed investment decisions concerning the listed issuer’s financial condition.

“In addition, it is imperative for the board of directors to comply with the corporate governance requirements which serve to, among others, promote corporate accountability to the shareholders and investing public,” it said. — TMR / pic source: Fruit Plus FB