KUALA LUMPUR, Nov 8 — In an unprecedented move, Serba Dinamik Holdings Bhd (SDHB) has filed an originating summons (OS) against Bursa Malaysia for acting in excess of power, including its action on Oct 22 to suspend trading of the company’s shares.
SDHB filed the legal action at the High Court here on Nov 3 naming Bursa Malaysia as the sole defendant.
In the application, the company, among others, is seeking a declaration that the instruction given by the defendant dated June 28, 2021 and July 2, 2021 to the plaintiff to appoint Ernst & Young Consulting Sdn Bhd as a special auditor to conduct a “Special Independent Review” (SIR) made pursuant to paragraphs 2.23 and 2.24 of the Main Market Listing Requirements (MMLR) is in excess of power, null and void and of no effect.
According to the OS, the plaintiff is seeking a declaration that the defendant has no power to instruct or direct the plaintiff to take any steps, action, or engage in any conduct which may contravene or otherwise may not comply with MMLR.
The plaintiff is also seeking a declaration that the defendant had acted in contravention of Section11(3)(a) of the Capital Markets and Services Act 2007 (CMSA) and a declaration that the defendant has no power to direct or instruct the plaintiff.
The SDHB seeking an order that the defendant be restrained from issuing any instruction to the plaintiff to undertake any special independent review or any review or investigation into the affairs of the plaintiff or any of its subsidiaries as well as damages and costs.
The SDHB also seeking an order the defendant, whether by itself or its servants, agents, representatives or third parties, be restrained from making any announcement or otherwise publish, distribute or make available to anyone the “Factual Findings Update” prepared by Ernst & Young Consulting Sdn Bhd pending final disposal of the OS.
Meanwhile, Bursa Securities Bhd said in a statement later in the evening that it has engaged a legal counsel to advise on the next course of action regarding the legal action taken against it by SDHB.
Bursa Securities said it will be “defending its position vigorously and will not abdicate its statutory roles and functions in the marketplace.”
It said as a frontline regulator of the capital market, Bursa Securities is entitled to exercise its power pursuant to the listing requirements in the interest of maintaining an orderly and fair market.
“Timely disclosure of material information is a key pillar of ensuring the market is well informed of the information and all investors are treated equally and able to trade on equal footing in terms of parity of disclosures. This is paramount to enable Bursa Securities to discharge its statutory duty,” it said. — Bernama
