Bursa Malaysia Securities Berhad (“Bursa Securities”) wishes to inform that it will take stricter enforcement action against directors of listed companies for breaches of the Listing Requirements pertaining to financial reporting obligations.
Bursa Malaysia Berhad’s Chief Regulatory Officer, Devaneson Evanson said Bursa Securities recognizes that it may not be desirable to penalise companies and ultimately shareholders for a breach of the Listing Requirements which is perpetuated by the directors being the “directing mind and will” of the companies.
“Hence, under the Listing Requirements, personal liabilities are imposed on directors of listed companies with the principal objective to improve accountability and corporate governance.”
Whilst Bursa Securities may take enforcement action against directors, Bursa Securities also wishes to highlight that the penalty that may be imposed on the directors may not necessarily be a public reprimand in all cases. Bursa Securities will take into account all facts and circumstances of the matter and due process will be accorded to the directors prior to determining the appropriate penalty to be imposed which may include a private reprimand, and/or imposition of fines only.
