The Securities Commission Malaysia (SC) today charged a former Chief Executive Officer (CEO) of Melewar Industrial Group Berhad, and two other individuals with insider trading. Datuk Lim Kim Chuan, 56, was charged at the Kuala Lumpur Sessions Court for acquiring 398,000 units of M3nergy Berhad shares between 6 August 2008 and 11 September 2008 whilst in possession of material non-public information.
The SC alleged that the material non-public information referred to in the charges relates to the Conditional Voluntary Take-Over Offer by Melewar Equities (BVI) Limited, a substantial shareholder of Melewar Industrial Group Berhad, to acquire M3nergy shares. The share acquisition was announced to Bursa Malaysia on 12 September 2008. Lim, who was also a former director of M3nergy Berhad, faces a total of 11 charges under the CMSA. Lim is said to have acquired the said shares through the accounts of Tay Hup Choon and Theng Boon Neoh. Tay Hup Choon, 47, a Singapore national and Theng Boon Cheng @ Tan Boon Cheng, 57, were charged for abetting Lim in the commission of the offences.
The charges against Lim, Tay and Theng were read out before Sessions Court Judge Norsharidah Awang. Lim was granted bail of RM250,000 with one surety while Tay and Theng were each granted bail of RM150,000 and RM120,000 respectively with one surety each. All claimed trial to the respective charges preferred.
The offence of insider trading under section 188(2) of the CMSA 2007 is punishable with an imprisonment term not exceeding 10 years and a fine of not less than RM1 million.
