KUALA LUMPUR: Stone Master Corp Bhd deputy managing director (MD) Datin Chan Chui Mei failed in her application to strike out the Securities Commission Malaysia’s (SC) claims against her for allegedly causing wrongful loss to the company.

Following the decision by High Court Judge Datuk Has Zainah Mehat yesterday, the hearing of the SC’s application for an injunction restraining her from dealing with monies in her bank account up to the amount of RM11.54 million, pending the disposal of the trial, is set for decision or clarification on March 20.

In September 2016, the SC obtained an ex-parte injunction against Chan.

Chan was charged under sections 179 and 317A(1) of the Capital Markets and Services Act 2007 (CMSA). She received RM11.54 million out of RM11.59 million meant to be paid by Stone Master to local representatives of 23 foreign companies for the exclusive rights to market and promote their products in Malaysia and Singapore.

Section 179 of the CMSA prohibits a person from using any manipulative device for subscription, purchase or sale of any securities.

Under section 317A(1), a director or an officer of a listed corporation is prohibited from doing anything with the intention of causing wrongful loss to the listed corporation.

The SC had sought payment of RM11.54 million to the regulator to be held in trust for Stone Master, and for Chan to be barred from being a director of a public listed company for a period of five years.

In addition, the SC is also seeking a civil penalty of RM1 million against Chan.

Despite facing the charges, Chan remains as Stone Master’s deputy MD.

On Dec 6 last year, Stone Master was classified as a Practice Note 17 company after its shareholders’ equity dropped to RM3.44 million, well below 50% of its issued and paid-up capital of RM22.48 million.

Stone Master is engaged in the manufacturing and trading of marble and granite products and ceramic tiles.