SC: Retaining Multi-Sports chairman and CEO as directors 'prejudicial to public interest'

PETALING JAYA: The Securities Commission of Malaysia (SC) today issued a statement warning investors in Multi Sports Holdings Bhd against the continued appointment of executive chairman Lin Huozhi and CEO Lin Liying as directors after they were issued reprimands in June 2018 for furnishing false and misleading financial statements to Bursa Malaysia.
The SC believes the presence of the two as executive directors on the board of the company is "prejudicial to public interest".
The SC's sanctions were made after finding that Practice Note 17-status Multi Sports had failed to disclose outstanding liabilities incurred by its wholly owned China subsidiary, Jinjiang Baixing Shoe Materials Co Ltd, in its financial statements for the period of March 31, 2015 to March 31, 2016. These liabilities relate to eight loans amounting to 169.55 million renminbi.
"Although Wong Wang Lam (a former independent non-executive director) has resigned from Multi Sports, Lin Huozhi and Lin Liying, whose last known addresses are
in Fujian City, China, remain as executive directors of Multi Sports. Their current whereabouts cannot be ascertained," the SC said.
All those in breach of the regulations have not appealed against the SC's reprimand issued on June 27, 2018.