©Business Times (Used by permission)
FOR the first time ever, Bursa Malaysia Bhd yesterday slapped three directors with fines, a move that is likely to bring cheer from investors.
The stock exchange operator fined directors of poultry firm Comsa Farms Bhd between RM25,000 and RM100,000 each for failing to prepare accurate accounts.
This is a departure from its practice of fining companies for breaking listing rules, a practice that unfairly penalises shareholders of a company, investors had said.
Bursa yesterday reprimanded Comsa Farms and its directors after they failed to prepare accurate unaudited results for the fourth quarter of the financial year ended March 31 2005.
Besides being reprimanded, some of the company's directors were also fined.
Comsa has also been directed to engage its external auditors to carry out a limited review on the company's next four quarterly results before they are announced.
Bursa Malaysia became aware of the matter when the audited accounts of Comsa for the financial year ended March 31 2005 reported a loss when its unaudited numbers showed a profit.
It made an audited loss after tax and minority interest of RM195.9 million, compared with unaudited profit after tax and minority interest of RM12.8 million in the fourth quarter ended March 31 2005.
"This deviation was mainly due to the company's failure to take into account the various accounting adjustments in the results of fourth quarter ended March 31 2005," it said in a press statement released in Kuala Lumpur.
Bursa Malaysia said in view of the seriousness of the breach, it has also taken action against the directors of Comsa for not ensuring the results of fourth quarter ended March 31 2005 are accurate.
All six Comsa directors reprimanded including Chia Yam Kung, Datin Heng Chui Koon, Datuk Sapari Amir, Datuk Kour Nam Ngum, Tan Sri Dr Ahmad Mustaffa Babjee and Ku Hien Liong.
In addition, Kour was fined RM100,000; Ahmad Mustaffa RM25,000 and Ku RM25,000.