The Court of Appeal in Putrajaya today upheld the decision of Bursa Malaysia Berhad to fine Ho Hup Construction Company Berhad’s former managing director Low Tuck Choy a sum of RM85,000 for the delay in submitting the company’s financial statements to the bourse.

A three-member panel chaired by Abdul Malik Ishak dismissed Low’s appeal to set aside the fine.

The panel, also comprising Clement Allan Skinner and Aziah Ali, ordered Low, 54, to pay RM25,000 in legal costs.

On Nov 4, 2008, the bourse’s disciplinary committee imposed a fine of RM85,000 on Low after finding him in breach of its listing requirements to submit Ho Hup’s annual audited accounts for the year 2006, annual report 2006 and the company’s quarterly report for the year 2007, to Bursa within the stipulate time frames.

His appeal to the Bursa Appeals Committee for reconsideration of the fine was rejected.

Low then filed a judicial review, seeking a certiorari order to quash the decision. The High Court, on Aug 19, 2010, dismissed his application.

Low, who was then managing director of Ho Hup, a company listed with Bursa Malaysia, was in charge of managing the company’s affairs and had the primary responsibility to ensure the proper discharge of the company’s obligations under the listing requirements.

On July 17, 2007, a show-cause notice was issued to Low as managing director of Ho Hup then, requiring Ho Hup to make written representation with supported documentary evidence as to why the company should not be found in breach of the listing requirements and be penalised.

Low replied via a letter dated July 23, 2007, giving reasons for the delay, and citing there was a delay in completion of audited financial accounts from Ho Hup’s international subsidiaries in Madagascar, Mauritius and South Africa and was facing some technical problems in the company’s accounting software.

Delay of 64 days

He was found to have submitted the annual audited accounts on July 31, 2007 which was a delay of 64 days, while the annual report was submitted on Sept 6, 2007, after a delay of 48 days, and the quarterly report was submitted on Aug 22, 2007, a delay of 59 days.

His lawyer, K Sarasvathi, submitted earlier that Bursa Malaysia failed to evaluate the reasons for the delay which was beyond Low’s control, adding that Low felt he should have been reprimanded, instead of being fined.

Bursa Malaysia counsel Lim Chee Wee, who is also Malaysian Bar president, urged the court to maintain the decision to fine Low as he said the powers of the Bursa was intended to be exercised to protect the investor public’s interest and ensure the investor public’s confidence in the capital market.

- Bernama