KUALA LUMPUR (July 13): Chemical manufacturer Sersol Bhd said the Malaysian Anti-Corruption Commission's investigation into its major shareholder and chief executive officer Datuk Justin Lim Hwa Tat involves certain payments made by the company to a third party on his instruction and approval.
Sersol said in a bourse filing that it had been informed thus by the MACC, which had contacted the company on the matter.
It further said Justin had been "overseas since February 2023 for purpose and reason only known to him", echoing what SMTrack Bhd — a radio frequency identification solutions provider, whose board Justin sits on as executive director — said in an earlier filing on the same day.
"The majority of the board of the company had not received any update from him thus far," Sersol's filing added.
Sersol was responding to news reports about Justin being on MACC's wanted list to assist in an investigation. Justin holds a 12.82% stake in the company as its second single largest shareholder, after Sanston Financial Group with 25.95%, according to Bloomberg data.
Justin, who just two weeks ago resigned from the board of printing and packaging services provider Computer Forms (Malaysia) Bhd over "differences of opinion with the management", is the son of Datuk Lim Tiong Siang, who was redesignated from his executive chairman post in Sersol a week ago to be the company's non-independent and non-executive director.
The redesignation took place right after Sersol announced it had been served with a court order that restrained its executive chairman cum managing director, CEO, an executive director and five independent directors from exercising their powers. The suit was filed by Sersol's independent director Leong Lup Yan and executive director Tan Fie Jen on June 23.
In a separate filing, Sersol said there is no potential liability to the group from the litigation, as the plaintiffs are seeking injunction on the recent newly appointed directors and not seeking any monetary damages against the company. It is also not expecting any financial or operational impact as the ad interim court order does not affect the financial and day-to-day operations of the company, saying that it would continue to seek legal advice on the matter.
Sersol shares shed one sen or 8.33% to close at 11 sen on Thursday, valuing the company at RM80.46 million.