KUALA LUMPUR (Feb 10): The High Court had on Thursday (Feb 10) dismissed Serba Dinamik Holdings Bhd's application for an injunction on Bursa Malaysia Securities Bhd to prohibit the regulatory authority from forcing the company to release the factual findings update (FFU) by Ernst & Young Consulting Sdn Bhd (E&Y Consulting).

In his decision delivered via proceedings held on Zoom, Justice Datuk Ahmad Fairuz Zainol Abidin ruled that Serba Dinamik's application to seek an injunction is not defensible and factually not supported, given the undertaking the company has with regards to contractual obligations with Bursa Malaysia.

“Furthermore, the court should not second-guess the functions of a regulator in imposing such conditions [for the company to make the announcement]. If so, there would be chaos if the court were to choose and accept to undertake Serba Dinamik's own interpretation rather than that of Bursa Malaysia, which is the regulator,” he said.

Justice Ahmad Fairuz cited the Federal Court's recent decision on Datuk Mohd Afrizan Husain vs Bursa Malaysia last month in arriving at the decision on Thursday.

“With this, the court dismissed the application in Enclosure 1 [for the injunction],” the court added.

Justice Ahmad Fairuz also ordered Serba Dinamik to pay RM30,000 costs to Bursa Malaysia.

Counsel Mak Lin Kum appeared for Serba Dinamik while senior counsel Datuk Loh Siew Cheang appeared for Bursa Malaysia. Lawyer Christopher Leong held a watching brief for the Securities Commission.

Serba Dinamik had filed the legal action against Bursa Malaysia last November seeking to impose an injunction on the regulator from forcing it to reveal the findings.

On Monday (Feb 7) at another High Court here, Judicial Commissioner Wan Muhammad Amin Wan Yahya had ordered Serba Dinamik to reveal the FFU within two market days.

In the Afrizan case, the apex court had last month ruled that there was no mandatory requirement on Bursa Malaysia's part as a stock exchange to immediately delist a company when a winding-up order is made against the listed entity, when it dismissed the interpretation of the liquidator.

The High Court on Thursday also said Bursa Malaysia was not acting in excess of its power when it suspended the shares of the oil and gas engineering company.

Justice Ahmad Fairuz said Bursa Malaysia was carrying out its duties under Section 11 of the Capital Markets and Services Act 2007 as a regulator due to unusual activity in its shares on that day.

“It would be a failure on the part of Bursa Malaysia if it did not go through with the suspension,” he said.

https://www.theedgemarkets.com/article/high-court-dismisses-injunction-application-serba-dinamik-stop-release-factfinding-update