CASES INVOLVING CHIEF FINANCIAL OFFICERS IN MALAYSIA AND OTHER JURISDICTIONS

Case

Ooi Boon Leong v. Public Prosecutor [2011] MLJU 1104 

Details

This was an appeal from the decision of the High Court in the case against Tan Yeow Teck, the former Director and Chief Financial Officer of Mems Technology Berhad (“CFO”) and Ooi Boon Leong (“CFO”). Both the Appellants were charged under section 122B(b)(bb) of the Securities Industry Act 1983 for knowingly having authorised the furnishing of a misleading statement to Bursa Malaysia Securities Berhad relating to a listed Company called, Mems Technology Bhd (“Company”). The misleading statement was contained in the Condensed Consolidated Income Statements (“ICCS) relating to the revenue of the Company for the year 2007 as at 31st July, 2007. The said ICCS showed that the Company had revenue of RM73.416 million. The said information was misleading because the figure of RM73.416 million was made of a sum RM30.169 million of sales that did not take place. 

Judgement/Outcomes

Both the CFO and CEO pleaded guilty to the charge brought against them and the Sessions Court judge imposed on each of them a fine of RM300,000 and in default of payment of the fine, 6 months’ imprisonment. Both have paid the fine. However, due to the inadequacy of the sentence, the Public Prosecutor filed an appeal to the High Court against the sentence imposed by the Sessions Court. When the appeal came before the High Court, the High Court Judge enhanced the sentence by imposing a term of 6 months’ imprisonment in addition to the fine of RM300,000 and in default of payment of the fine 2 years imprisonment. Dissatisfied with the decision of the High Court, both the CFO and CEO appealed to the Court of Appeal. Having considered the grounds of the appeal, the Court of Appeal found no reason to interfere with the sentence imposed by the High Court Judge. The appeal was therefore dismissed and the decision of the High Court Judge was affirmed.

SOURCE : MIA