Serba Dinamik takes Bursa Securities to court

PETALING JAYA: Serba Dinamik Holdings Bhd filed an originating summons (OS) at the Kuala Lumpur High Court last Wednesday against Bursa Malaysia Securities Bhd (Bursa Securities) in view of the stock exchange’s directive to conduct a special independent review and to disclose the findings of the review.

“The circumstances leading to the filing of the OS by Serba Dinamik are based on, inter alia, its contention that the instruction given by Bursa dated June 28, 2021 and July 2, 2021 respectively to Serba to appoint Ernst & Young Consulting Sdn Bhd (EY) as a special auditor to conduct a ‘special independent review’ is in excess of Bursa’s power. It is also Serba’s contention that Bursa’s instruction to Serba dated Oct 22, 2021 to announce a ‘factual findings update’ made by EY is also in excess of its power and ought to be declared as null and void,“ Serba Dinamik said in a stock exchange filing today.

Serba Dinamik contends that Bursa Securities cannot exercise its power purportedly in directing Serba Dinamik to appoint EY as a special auditor to conduct the special independent review. The company is also seeking interim injunctive relief and damages against Bursa Securities.

“Apart from the potential damages to be assessed and costs which may be awarded against Bursa and the corresponding legal costs, the OS is not expected to have any other material financial impact on the company for the financial year ending June 30, 2022. The OS is not expected to have any business and operational impact on the company,“ Serba Dinamik said.

Serba Dinamik had previously filed a lawsuit against its former auditor KPMG over audit disputes.

Bursa Securities said as a frontline regulator of the capital market, it is entitled to exercise its power pursuant to the listing requirements in the interest of maintaining an orderly and fair market.

“Timely disclosure of material information is a key pillar of ensuring the market is well informed of the information and all investors are treated equally and able to trade on equal footing in terms of parity of disclosures. This is paramount to enable Bursa Securities to discharge its statutory duty,” it said in a statement.

Bursa Securities has engaged a legal counsel to advise it on this matter.

“Bursa Securities will be defending its position vigorously and will not abdicate its statutory roles and functions in the marketplace,” it said.