Kuala lumpur: Bursa Malaysia Securities Bhd has publicly reprimanded Fitters Diversified Bhd and its five directors for breaching the Main Market Listing Requirements (Main LR).

According to BERNAMA News Agency, the directors involved are Datuk Sok One a/l Esen, Hoo Swee Guan, Datuk Seri Gan Chow Tee, Wong Kok Seong, and Kho See Yiing. Each director has been fined RM400,000, bringing the total penalties to RM2 million.

The reprimand was issued due to Fitters’ failure to make an immediate announcement on March 7 and 8, 2023, regarding acquisitions made by its wholly owned subsidiary, Fitters Development Property Sdn Bhd. These acquisitions involved the purchase of 12.14 million ordinary shares, or 4.54 percent, of Computer Forms (Malaysia) Bhd (CFM) for RM26.44 million in cash, and 6.18 million units, or 4.78 percent, of Warrants A of CFM for RM8.33 million in cash via the open market.

Additionally, Fitters failed to ensure that the announcement on these acquisitions, dated March 9, 2023, was made in a timely manner. Bursa Malaysia noted that the statement claiming the acquisitions were not subject to shareholders’ approval was inaccurate, false, and misleading.

All five directors at the material time were found to have breached the Main LR by permitting the company to commit these violations. Bursa Malaysia emphasized the seriousness of these contraventions, stating that the requirements to make an immediate announcement and obtain prior shareholders’ approval for material related party transactions are fundamental for aiding investors in making informed investment decisions and protecting shareholders’ interests. Such requirements also provide shareholders the opportunity to consider transactions that may adversely affect their interests in a timely manner.

The exchange further reminded Fitters and its board of their responsibility to maintain appropriate standards of corporate responsibility and accountability to shareholders and the investing public.