Bursa Malaysia Securities Berhad [Registration No.: 200301033577 (635998-W)] (Bursa Malaysia Securities) has publicly reprimanded Meridian Berhad (MERIDIAN) and its Executive Director, Tang Boon Koon (TANG) for breach of the Bursa Malaysia Securities MAIN Market Listing Requirements (MAIN LR). In addition, TANG was imposed a fine of RM8,500.
MERIDIAN was publicly reprimanded for breach of paragraph 9.23(1) of the MAIN LR where the company had failed to issue the annual report that included the audited financial statements together with the auditors’ and directors’ reports (AFS) in respect of: -
(a) the 17-month financial period ended (FPE) 30 November 2023 (AR 2023) on or before 31 March 2024. MERIDIAN only issued the AR 2023 on 5 April 2024, after a delay of five (5) market days; and
(b) the 18-month FPE 31 May 2025 (AR 2025) on or before 30 September 2025. MERIDIAN only issued the AR 2025 on 8 October 2025, after a delay of six (6) market days.
MERIDIAN was also required to ensure: -
- TANG and relevant personnel attend a training programme in relation to compliance with the MAIN LR particularly pertaining to financial statements; and
- its Board of Directors (Board) reviews and assesses the adequacy and competency of the company’s finance and accounting resources and adequacy, comprehensiveness, implementation and effectiveness of the company’s policies and procedures in respect of financial reporting.
TANG, the Executive Director of MERIDIAN at the material time had breached paragraph 16.13(b) of the MAIN LR for permitting MERIDIAN to commit the breaches and was imposed a public reprimand and total fines of RM8,500.
The finding of breach and imposition of the above penalties on MERIDIAN and TANG were made pursuant to paragraph 16.19 of the MAIN LR upon completion of due process and after taking into consideration all facts and circumstances of the matter including the materiality of the breaches, impact of the breaches to MERIDIAN and its shareholders/investors, and the roles, responsibilities, knowledge and conduct of TANG.
Bursa Malaysia Securities views the breaches seriously as timely submission of financial statements is a fundamental obligation of listed companies and is of paramount importance in ensuring an orderly and fair market for securities traded on Bursa Malaysia Securities and necessary to aid informed investment decisions.
Bursa Malaysia Securities has also reminded MERIDIAN and its Board of their responsibilities to maintain the appropriate standards of corporate responsibility and accountability to its shareholders and the investing public.
BACKGROUND
MERIDIAN had delayed in issuance of the AR 2023 and AR 2025 mainly due to the failure to maintain/provide the necessary information/documents/accounting records to the external auditors to facilitate completion of the audit towards issuance of the AR 2023 and AR 2025 within the stipulated timeframe. The unresolved issues with the external auditors also led to the issuance of disclaimer of opinion on both the AFS 2023 and AFS 2025 which triggered the prescribed criteria under paragraph 2.1(d) of Practice Note 17 (PN17) and MERIDIAN was classified as a PN17 Issuer on 8 April 2024.
Notwithstanding that the delays in issuance of the AR 2023 and AR 2025 were five (5) and six (6) market days respectively, investors were deprived of MERIDIAN’s audited financial information for an extended period of more than 17 months for AR 2023 and 18 months for AR 2025.
TANG was the sole Executive Director of MERIDIAN, primarily responsible for managing the Group’s operations, resources and finance function/management. He had failed to ensure that proper and complete information/documentation/audit evidence were provided to the external auditors to resolve the audit issues towards the timely issuance of the AR 2023 and AR 2025.
