Lotte to conduct internal review, seek advice following SC's decision

File pic shows Lotte Chemical Titan plant in Johor,

KUALA LUMPUR: Lotte Chemical Titan Holdings Bhd (LCT) said it will conduct internal reviews and seek external advice in light of the Securities Commission's decision to dismiss applications for a review of reprimands and penalties imposed on the company and its directors.

"The Company takes note of the latest decisions of the SC and the board of directors is conducting internal reviews and is seeking external advice on this matter.

"The Company is of the view that this incident has no material effect on the Company’s business operations or financial condition," it said in a filing today.

The SC said in a statement yesterday that it was maintaining its decision to impose a penalty of RM560,000 on LCT and RM441,000 on each of the company's two executive directors, Lee Dong Woo and Lee Kwan Ho.

However, it was setting aside reprimands on the independent directors of LCT's board - Tan Sri Abdul Rahman Mamat, Tan Sri Dr Rafiah Salim and Ang Ah Lek.

Non-independent non-executive director Cho Seongteag's application for a review of his reprimand is still pending his further reply to the SC. 

According to the regulator, the alleged breaches of the relevant provision in relation to LCT's listing were 

(1) the alleged failure of the Company to inform the SC of material developments to the Company prior to the Listing, and 

(2) the alleged failure of the Company to inform its Principal Adviser of such material developments.

Maybank Investment Bank, the issuer of the company's listing exercise, was also fined RM450,000 due to its failure to carry out out appropriate due diligence on the company, while Ernst & Young, the reporting accountant, was fined RM297,500.