MSWG: Directors convicted of criminal offences should go on leave

PETALING JAYA: The Minority Shareholder Watchdog Group (MSWG) has reiterated its stand that directors who are convicted of criminal offences, whether those who have applied for stay of execution or appealing their case, should take leave of absence from their board.
The group was commenting on the conviction of Supermax Corp CEO Datuk Seri Stanley Thai for insider trading offences in connection with now defunct APLI Industries Bhd.
The Kuala Lumpur Sessions Court convicted former CEO of APLI Thai and former remisier Tiong Kiong Choon for insider trading offences. Thai was sentenced to a five-year jail term and a RM5 million fine, while Tiong was sentenced to five years jail and a RM10 million fine. Thai has obtained a stay of execution of the sentencing and filed an appeal at the High Court.
"In addition, we do not subscribe to the statement issued by the chairman of Supermax that Thai’s charge is related only to APL Industries Bhd and not the company", it said in its newsletter dated Dec 3, 2017.
MSWG believes that the board should review and incorporate certain aspects of corporate governance and conduct which are more robust into their present Code of Ethics to include systems allowing for disqualifying, suspending or debarring directors whose business integrity have been compromised for certain convicted offences.
To recap, the board of Supermax threw its support behind Thai upon his conviction for insider trading, stating that it is business as usual in Supermax and that its management team is committed to delivering good business performance and profitability in the interest of the company and its shareholders.