Reprimand Issued for Breach of Listing Requirements
Bursa Malaysia Securities Bhd has publicly reprimanded P.I.E. Industrial Bhd (PIE) and two of its directors for a significant breach of the Bursa Malaysia Securities Main Market Listing Requirements. The reprimand was issued after the company failed to make an immediate announcement about a material development: a subsidiary had secured a new overseas customer that specializes in servers and switches. While the company secured the customer on March 31, 2024, it only made the official announcement on April 19, 2024, with details on the expected revenue following even later on April 23. This delay in disclosure was deemed a serious violation of the market’s rules, leading to the public censure and a total fine of RM150,000 imposed on the two directors involved. The action underscores the regulator’s commitment to enforcing strict compliance and maintaining a fair and transparent market for all investors.
Severe Penalties to Uphold Market Integrity
The market regulator’s decision to impose the reprimand and substantial fines was the culmination of a thorough due process. The regulatory body took into consideration a range of factors, including the materiality of the breach and its potential impact on both the company and its shareholders. Crucially, it also evaluated the individual roles, responsibilities, knowledge, and conduct of the directors in the matter. Bursa Malaysia views such contraventions seriously, as the timely disclosure of material information is essential for a transparent, orderly, and fair market. Furthermore, the regulator stressed the paramount importance of avoiding selective disclosure to ensure all investors have equal access to information that could affect the business and affairs of a listed company. This commitment is vital for maintaining investor confidence and preserving the integrity of the entire capital market.
Directors Fined for Non-Compliance
The two directors at the center of the breach faced direct penalties. The company’s managing director, Mui Chung Meng, was issued a public reprimand and a significant fine of RM100,000. Similarly, the executive director, Lan, Kuo-Yi, also received a public reprimand and was fined RM50,000. These penalties serve as a clear warning to other directors and corporate leaders about the severe consequences of non-compliance with listing requirements. The market’s commitment to holding individuals accountable for their actions and inactions reinforces the principle that directors have a fiduciary duty to their shareholders and the market. By ensuring that all material information is disseminated promptly and equitably, the regulator protects the interests of investors and upholds the trust that underpins the country’s financial system.
