Serba Dinamik takes legal action against Bursa


KUALA LUMPUR: Serba Dinamik Holding Bhd has filed an originating summons at the High Court against Bursa Malaysia Securities Bhd following the appointment of Ernst & Young Consulting Sdn Bhd as a special auditor to conduct a “special independent review”, which the company described as in "excess of power, null and void and of no effect".

In a filing with Bursa on Monday, it said the originating summons was to declare Bursa's orders dated June 28 and July 2, under paragraphs 2.23 and 2.24 of the Main Market Listing Requirements (MMLR) which it described as "in excess of power, null and void and of no effect”.

Serba Dinamik also sought a declaration that the instruction given by Bursa to the company dated Oct 22, to announce a “factual findings update” made by Ernst & Young Consulting was also in excess of power, null and void and of no effect.

The company is also seeking a declaration that Bursa had failed to comply with paragraph 2.24 of the MMLR.

"A declaration that Bursa has no power to instruct and/or direct Serba Dinamik to take any steps, action and/or engage in any conduct which may contravene or otherwise may not comply with MMLR 9.03," it said.

Serba Dinamik also said Bursa has no power to instruct and/or direct the company to take any steps, action and/or engage in any conduct which may contravene or otherwise may not comply with MMLR 9.35A.

It added Bursa’s conduct and/or action on Oct 22 in suspending the trading of the securities of Serba Dinamik listed on the Main Market of Bursa under stock code 5279 and 5279WA is in excess of power, null and void and of no effect.

The move to seek the court’s decision were part of the 19 points raised in the originating summons.

Serba Dinamik also pointed out its contention that Bursa’s instruction to the company dated Oct 22 to announce a “factual findings update” made by Ernst & Young Consulting is also in excess of its power and ought to be declared as null and void.

“Serba Dinamik contends that Bursa cannot exercise its power purportedly pursuant to paragraphs 2.23 and 2.24 of MMLR in directing Serba Dinamik to appoint Ernst & Young Consulting as a special auditor to conduct a “Special Independent Review”.

It also said firstly there was no opinion by Bursa as to breach of any provision of the MMLR and no opinion of breach was notified to SDSB till to-date.

Secondly, there was no opinion by Bursa that was notified to Serba Dinamik that a special independent review was necessary in any event; Ernst & Young Consulting Sdn Bhd is not an auditor within the meaning of the “auditor” in the MMLR.

Serba Dinamik is also seeking interim injunctive relief against Bursa pending the full and final disposal of originating Summon to restrain Bursa from:

a. making any announcement or otherwise publish, distribute or make available to anyone the “factual findings update” prepared by Ernst & Young Consulting;

b. exercising any power to do anything, to instruct and/or otherwise issue any directive against Serba Dinamik pursuant to paragraph 2.24 of the MMLR pending the full and final disposal of the originating Summon herein;

c. from issuing any notice to Serba Dinamik and the directors of Serba Dinamik to show cause for any purported breach of the MMLR.

In addition, Serba Dinamik is also seeking damages against Bursa. The application for interim injunctive relief is fixed for hearing on Nov 11 and the case management for the originating summons has been fixed on Nov 17.

StarBiz reported earlier trading in shares of Serba Dinamik remained suspended after it failed to announce the findings from the Factual Findings Update on the Special Independent Review (SIR) by Oct 26.

“Kindly be advised that Serba Dinamik has not complied with the directive to make an announcement on the findings from the Factual Findings Update on the SIR by Oct 26.

“Accordingly, the trading in the company's securities shall be suspended with effect from 9am on Oct 27,” the stock exchange said.

As the trading in Serba Dinamik’s securities has been suspended since 2.30pm on Oct 22, the suspension of trading will continue until further notice.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In Business News

Govt decides to maintain electricity tariff from Feb 1, 2022 to Dec 31, 2024
Top Builders triggers PN17 criteria
Sunway REIT net property income up 86.5% in Q6 FP2021
TNB gets nod for RP3; electricity tariff remains
Inta Bina secures RM160.6mil construction contract
Financial Sector Blueprint 2022-2026 initiatives complement current banking infrastructure
Boustead, Boustead Plantations appoint new directors
KLCC REIT returns to the black in 4Q
SDP's report on forced labour allegation close to completion
Bursa Malaysia ends broadly higher

Others Also Read


Vouchers