Bursa publicly reprimands Benalec and three others

PETALING JAYA: Bursa Malaysia Securities Bhd has publicly reprimanded Benalec Holdings Bhd and its three executive directors, including former managing director Datuk Leaw Seng Hai, in relation to a land disposal deal involving related party transactions.
In a filing with the stock exchange, Benalec said former executive directors Datuk Leaw Ah Chye and Datuk Leaw Tua Choon were also publicly reprimanded. Three of them were fined a total of RM250,000.
Both Ah Chye and Tua Choon, however, had resigned on Dec 4, 2013. Seng Hai, meanwhile, was redesignated as executive director on Feb 11.
Benalec failed to issue an immediate announcement, appoint an independent adviser and procure shareholders' approval of the land disposals that were entered between Benalec's subsidiary Strategic Land Sdn Bhd and Sunshine 2000 Sdn Bhd as well as Seaside Synergy Sdn Bhd on Jan 18, 2012 and March 12, 2012 respectively.
"The breaches were detected arising from a complaint made to Bursa Malaysia Securities in March 2013 alleging, among others, that the land disposals were related party transactions involving the interests of Ah Chye and Tua Choon," it noted.
Being interested directors in the land disposals, Ah Chye and Tua Choon had failed to disclose details of the nature and extent of their interest in relation to the land disposals.
Bursa views the contraventions seriously in view of the importance of the related party transaction requirements under the listing requirements, which serve to govern potential conflicts of interest that may give rise to potential abuses vis-à-vis transactions by listed companies.