KUALA LUMPUR (July 21): Sersol Bhd issued a misconduct notice on its chief executive officer Datuk Justin Lim Hwa Tat, who is under Malaysian Anti-Corruption Commission (MACC) investigation, and demanded that he return to the office within one week.
In a filing to Bursa Malaysia on Friday (July 21), Sersol also instructed Lim, who has been "overseas since February 2023 for purpose and reason only known to him", to immediately give a written response to the board.
“[The board] instructed the CEO to update the entire board in writing on what he had been doing in detail for and on behalf of the company on a weekly basis. After the above, the company issued a misconduct notice dated July 20 to the CEO and [is] awaiting his response,” the chemical manufacturer said.
Sersol further added there is no impact on its operations so far, as executive director Tan Fie Jen had been handling day-to-day operation of the company's core business even before the appointment of the CEO.
In a separate filing on the same day, Hillcove Sdn Bhd has emerged as a new substantial shareholder of Sersol with a 13.67% stake in the company, after acquiring 100 million shares in the off market.
Based on Friday’s closing share price 11.5 sen, the block of 100 million shares which Hillcove acquired was estimated to be worth RM11.5 million, a back-of-the-envelope calculation showed.
Sersol's three existing substantial shareholders are Sanston Financial Group with a 25.95% stake, Lim (12.82%), and Lazarus Sec Pty Ltd (12.82%).
Lim is under the anti-graft agency's probe in relation to having approved and instructed five payments totalling RM2.5 million made to a private company named HGC Legacy Enterprise.
The purpose of the payments, which were recorded as deposits during April and May 2023, is yet to be made known to the board, the company said in a bourse filing on July 17.
Sersol shares closed one sen or 9.52% higher at 11.5 sen, valuing the company at RM84.12 million.