KUALA LUMPUR (June 6): Bursa Malaysia has reprimanded property developer Meridian Bhd (KL:MERIDIAN) and fined five of its directors a total of RM350,000 for failing to promptly disclose that the company had minimal business activity.

Meridian’s fourth quarter 2023 report, released on Aug 29, 2023, showed a revenue of RM2.74 million — only 0.93% of its RM294 million share capital — well below the 5% threshold that requires an announcement under Bursa Malaysia rules. 

In a filing with the bourse, the regulator said the company, which is also involved in the investment of properties, only made the required disclosure on Sept 26, 2023 after being contacted by Bursa Malaysia a day earlier, resulting in a 28-day delay.

The company secretary had reminded the board about this requirement during meetings in May and August, but no action was taken. The regulator said Meridian and its directors had no valid reason to assume revenue would rise from 0.93% to meet the 5% threshold by November 2023. In reality, revenue for that period was only RM3.796 million, or 1.29% of share capital.

CEO Datuk Yap Ting Hau and director Tang Boon Koon were each fined RM100,000, while three independent directors — Mark Chew, Ng Kok Hok, and Kunamony Kandiah — were each fined RM50,000.

Bursa Malaysia said the failure was serious, as such information helps investors assess if the company can remain listed. It added that changing the financial year-end did not remove Meridian’s obligation to make the announcement and reminded the board to maintain good governance and transparency.