PETALING JAYA: Iqzan Holdings Bhd has obtained leave from the High Court to pursue a judicial review against Bursa Malaysia’s decision to fine and reprimand the company and its directors a total of RM1.73 million.
The leave, granted on Oct 7, allows Iqzan and its board members to challenge Bursa’s disciplinary action over alleged breaches of listing requirements.
Counsel Datuk C. Vignesh Kumar confirmed the court’s decision, saying the company is disputing Bursa’s authority to impose such penalties.
“The company contends that Bursa acted beyond its powers, as it is a commercial entity and has no authority to enforce penal sanctions such as fines against individual directors of listed companies,” he told theSun.
He said the review would also argue that Bursa failed to consider material facts and exercised powers not conferred under the Capital Market Services Act 2007 (CMSA).
“Disciplinary authority with the power to impose sanctions of a penal nature lies with the Securities Commission or the courts.”
Bursa Malaysia, which regulates listed companies, rejected Iqzan’s appeal on Feb 14 and upheld penalties against the company and its five directors for breaching disclosure and corporate governance rules.
According to Bursa, Iqzan failed to seek shareholder approval for the disposal of two adjoining leasehold industrial lots in Bayan Lepas, Penang, completed on Nov 15, 2023.
It also said the company made inaccurate disclosures in the sale of shares in its wholly owned subsidiary, Zoomic Technology (M) Sdn Bhd, and failed to promptly announce related agreements or the completion of share transfers on Aug 15, 2023.
Bursa said although Iqzan was delisted on July 30, 2024, the breaches occurred while it was still listed, and the penalties were imposed under paragraph 16.19 of the Listing Requirements.
Iqzan, which provides management services and holds investments in subsidiaries, was classified as a Practice Note 17 (PN17) company in November 2019 after its shareholders’ equity fell below 25% of issued capital.
The five directors penalised were executive director Norman Zainuddin, non-independent non-executive director Datuk Ong Chek Chai and independent non-executive directors Chua Yeong Lin, Kunamony S. Kandiah and Cheah Ban Seng.
Ong, Norman and Chua were fined RM375,000 each, while Kunamony and Cheah were fined RM300,000 each.
Iqzan said the disposals were part of its PN17 regularisation plan, adding that the Covid-19 pandemic had severely affected operations.
“The disposals involved non-core assets and were necessary to sustain operations. All disclosures were made in good faith.”
The judicial review is expected to clarify the extent of Bursa Malaysia’s enforcement powers under the CMSA. A case management date would be fixed soon.
