KUALA LUMPUR (Feb 19): Bursa Malaysia has publicly reprimanded CN Asia Corporation Bhd, which makes oil-and-gas tanks, and fined its seven directors a total of RM225,000 for breaching listing rules.

CN Asia failed to obtain its shareholders’ approval before diversifying its business to include money lending services by buying Southborn Capital Sdn Bhd on April 15, 2021, Bursa Malaysia said in a statement on Monday.  

Among those penalised were deputy chairman Datuk Seri Tan Choon Hwa, who was fined RM25,000, and executive director Tengku Shamsulbhari Tengku Azman Shah (RM50,000) as well as independent directors Tania Scivetti and Nadanarajah Ramalingam, who were fined RM25,000 each.

“Bursa Malaysia has also reminded CN Asia and its board of directors of their responsibilities to maintain the appropriate standards of corporate responsibility and accountability to its shareholders and the investing public,” said the statement.

The company signed an agreement on April 15, 2021 to fully acquire Southborn Capital but only obtained its shareholders’ ratification of the diversification on June 24, 2022, the exchange noted.   

CN Asia had only conducted an assessment on July 26, 2021, “which in any event, was wrong,” after being advised on June 16, 2021 to mull over the rules and consider the expected amount of proceeds from the proposed private placement to fund the money-lending business, Bursa Malaysia said.

Further, there would be a diversion of 37.7% of the net assets to the money lending business when CN Asia had in fact provided a total loan amount of RM20 million as at March 31, 2022, which represented 50.32% of the net assets.