KUALA LUMPUR: Bursa Malaysia Securities Bhd has publicly reprimanded SUNZEN BIOTECH BHD and two of its executive directors for breaching ACE Market Listing Requirements.
Sunzen's managing director cum CEO Datuk Hong Choon Hau and former executive director and chief operating officer Lim Eng Chai were each publicly reprimanded and fined RM50,000. Lim resigned on Nov 30,2018.
Bursa Securities said Hong and Lim failed to obtain prior shareholders’ approval for diversifying into a new business which was trading of crude palm oil (CPO) and its derivative products such as palm kernel and palm kernel shell in February 2017.
It said Sunzen only announced the proposed ratification of the diversification on Feb 9,2018 and obtained its shareholders’ ratification for the corporate exercise on May 30 that year.
“The two executive directors of Sunzen at the material time had breached Rule 16.13(b) of the ACE LR for permitting Sunzen to commit the above breach, ” Bursa Securities said.
Sunzen's core business was biotechnology research and development and manufacturing and marketing of animal feed supplements and animal health care products, which includes feed additives, nutritional feed supplements, veterinary pharmaceutical and animal vaccines.
However, in Febuary 2017, it started trading of CPO and its derivative products, triggering Rule 10.13(1)(b) of the ACE LR where the CPO & derivative products trading had contributed more than 25% of SUNZEN’s net profit as at the quarterly report for the financial period ended March 31,2017; June 30,2017; Sept 30,2017 and Dec 31,2017.
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