Securities Commission today took top officials of troubled air cargo firm Transmile to court on charges of providing misleading information on the company's accounts.

Gan Boon Aun, founder and chief executive of the firm until he resigned on June 19, Lo Chok Ping and Khiudin Mohamad were charged with abetting Transmile in making the misleading statement in the company's 2006 financial accounts.

"The said statement is likely to induce the purchase of securities of Transmile by other persons," said the charge sheets against the three directors provided by the watchdog.

According to state news agency Bernama they face a minimum fine of RM1 million and up to 10 years in prison, or both, if convicted.

Stock fallen by 50%

Transmile's accounting woes came to light on May 7 when it announced it failed to meet the deadline to submit audited financial statements for 2006.

The company had to restate previously announced net profits for 2006 and 2005 as losses after a special audit uncovered false statements of revenue and asset purchases going as far back as 2004.

The stock has since fallen by more than 50 percent.

Transmile's prominent shareholders include Hong Kong-based Malaysian billionaire Robert Kuok, the Singapore government and national postal company Pos Malaysia, whose main shareholder is state investment arm Khazanah Nasional.

The company's chairman and independent non-executive director is former MCA chief, Ling Liong Sik.