CN Asia reprimanded, directors fined, for not getting shareholders approval to diversify into money lending business

Publish date: Tue, 20 Feb 2024, 09:45 AM

KUALA LUMPUR: Bursa Malaysia Securities Bhd has publicly reprimanded CN Asia Corporation Bhd (CN ASIA) and seven of its directors for the breach of Bursa Malaysia Securities Main Market listing requirements.

It also imposed total fines of RM225,000 on the seven directors, the stock exchange regulator said in a statement.

It said CN ASIA was reprimanded "for failing to obtain prior shareholders' approval in respect of the diversification of the group business to include money lending business (diversification) pursuant to the share sale agreement (SSA) entered on April 15, 2021, to acquire 100 per cent of the issued share capital in Southborn Capital Sdn Bhd (SCSB)."

"CN ASIA only obtained its shareholders' ratification of the diversification on June 24, 2022," it added.

Malaysia said it views the contravention seriously as the requirement to obtain shareholders' prior approval for material diversification in operations is fundamental to protect the interest of shareholders and ensure the shareholders are kept informed of all facts or information and allow them an opportunity to consider how such diversification might affect their interest. - Bernama

Labels: CNASIA

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