KUALA LUMPUR (Oct 6): Businessman Datuk Lim Kok Boon is strongly disputing the claim by Securities Commission Malaysia (SC) that he had engaged in insider trading involving GW Plastics Holdings Bhd shares.

Lim said there is no basis in the claim against him in a civil suit filed by the SC against the businessman and another individual, Cheah Mean Har, at the High Court on Sept 28.

"I, therefore, intend to defend this claim to the hilt, and will move to strike out the claim which is scandalous, frivolous, vexatious and otherwise an abuse of the process of the court," he said in a statement issued through his lawyer today.

Lim insisted that he was never involved in any insider trading activities during the corporate exercise relating to GW Plastics or in any other corporate exercises he had been involved with.

"I have always been very strict with myself and others on issues of corporate governance in the conduct of corporate transactions and the handling of price sensitive information. I hold the principle of trust and integrity very highly," he said.

SC, in its suit, claims that Lim had communicated material non-public information to Cheah, who then allegedly purchased GW Plastics shares while in possession of the information.

The material information relates to a proposed share sale agreement between GW Plastics and Scientex Packaging Film Sdn Bhd and a proposed distribution of the cash proceeds arising from the agreement to GW Plastics' shareholders. The information was announced by GW Plastics to Bursa Malaysia on Oct 3, 2012.

GW Plastics changed its name to MCT Bhd in 2015 following the completion of its reverse takeover by MCT Consortium Bhd.

MCT shares closed unchanged at 84 sen today, for a market capitalisation of RM1.12 billion.