Bursa Malaysia Securities Berhad [Registration No.: 200301033577 (635998-W)] (Bursa Malaysia Securities) has publicly reprimanded MCOM Holdings Berhad (MCOM) for breach of the Bursa Malaysia Securities LEAP Market Listing Requirements (LEAP LR).
MCOM was publicly reprimanded for breach of Rule 6.13 of the LEAP LR for failing to announce the annual audited financial statements together with the information set out in Part B of Appendix 6A as well as the auditors’ and directors’ reports for the 18-months financial period end 30 June 2024 (AFS 2024) on or before 31 October 2024. MCOM has yet to announce the AFS 2024 as at to-date.
MCOM was also required to ensure its Board of Directors review and assess 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.
The finding of breach and imposition of the public reprimand on MCOM was made pursuant to Rule 8.12 of the LEAP LR upon completion of due process and after taking into consideration all facts and circumstances of the matter including the materiality and impact of the breach.
Bursa Malaysia Securities views the breach seriously as timely submission of financial statements is a fundamental obligation of listed companies and 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 MCOM and its Board of Directors of their responsibilities to maintain the appropriate standards of corporate responsibility and accountability to its shareholders and the investing public.
BACKGROUND
MCOM’s failure to issue the AFS 2024 on or before 31 October 2024 (Due Date) was mainly due to the company’s insufficient and lack of experienced accounting personnel, largely due to high turnover and resignation of the external auditors on 29 October 2024, primarily due to unsettled audit fees.
These reasons do not justify the delay as all listed companies are required to have the necessary funds and resources including sufficient and available finance/accounting staff to facilitate the preparation of their financial statements to enable and ensure compliance with the listing requirements. MCOM had also failed to demonstrate reasonable efforts taken including to pay the outstanding audit fees to the external auditors to enable commencement of the audit and issuance of the AFS 2024 by the Due Date.
Bursa Malaysia Securities had also commenced de-listing procedures against MCOM pursuant to Rule 6.14(5) of the LEAP LR and decided to defer the de-listing of MCOM provided that the company announce the AFS 2024 on or before 31 August 2025, as represented by MCOM and after taking into consideration that the company had appointed a new auditor on 21 May 2025.
