KUALA LUMPUR: Bursa Malaysia Securities Bhd has publicly reprimanded Computer Forms (Malaysia) Bhd (CFM) and imposed total fines of RM2 million on eight of its directors for breaches of the Bursa Malaysia Securities Main Market Listing Requirements (Main LR).
In a statement today, Bursa Malaysia Securities said the directors breached Paragraph 16.13(b) of the Main LR by permitting CFM to commit the violations.
The exchange said CFM’s announcement on Jan 5, 2023 regarding a joint venture agreement (JVA) with EA Mobility Holding Co Ltd was inaccurate, contained insufficient information for investors to make informed investment decisions, and was misleading because it omitted material facts.
It said the announcement failed to disclose a shareholders’ agreement signed on the same day, which gave EA Mobility the right to require CFM to purchase its stake in the joint venture company if specified electric bus orders and RM12.5 million in cash payments were not secured by June 30, 2023.
Bursa Malaysia Securities also found that CFM’s press release dated July 3, 2023 failed to disclose that the company had not fulfilled the conditions under the JVA, including securing confirmed orders for 200 electric buses and aggregate cash payments of at least RM12.5 million by the June 30, 2023 deadline.
The exchange said the press release also omitted that the JVA was at risk of termination because EA Mobility was entitled to exercise its put option following the shortfall, which could have automatically terminated both the shareholders’ agreement and the joint venture agreement.
“Bursa Malaysia Securities views the contraventions seriously, as timely, full and accurate disclosure of material information is paramount to enabling investors to make informed decisions, ensuring an orderly and fair market for securities traded on Bursa Malaysia Securities, and maintaining market integrity and investor confidence,” the exchange said. – Bernama