The SC said on Tuesday Lim Kok Boon, who was the CEO and executive director then, and Cheah Mean Har were allegedly involved in the insider trading of GW Plastics’ shares in September 2012.
The regulator has in the suit filed on Sept 28, claimed Lim had communicated material non-public information to Cheah. This had breached section 188(3)(a) of the Capital Markets and Services Act 2007.
According to the SC, Cheah had then purchased GW Plastics shares while in possession of the material non-public information in breach of section 188(2)(a) of the CMSA.
“The material information referred to in the action related to a proposed share sale agreement between GW Plastics and Scientex Packaging Film Sdn Bhd and a proposed distribution of the cash proceeds arising from the Share Sale Agreement to the shareholders of GW Plastics,” it said.
On Oct 3, 2012, GW Plastics announced the corporate exercise to Bursa Malaysia.
SC is seeking a disgorgement of three times the profits made as a result of the insider trading and a civil penalty of RM1mil from each of the defendants.