PUTRAJAYA – The Court of Appeal today dismissed Serba Dinamik Holdings Bhd’s application for a stay on a high court order for the company to make public the Factual Findings Update (FFU) on its finances by Ernst & Young Consulting (EY) Sdn Bhd pending disposal of an appeal.
Serba Dinamik had sought the stay order pending disposal of its appeal in the Court of Appeal against the high court’s decision last February 7 directing the oil and gas company to make a public announcement of the FFU.
EY was appointed to conduct a special independent review on Serba Dinamik’s financial accounts for a 12-month period ending December 31, 2020, within two market days.
Today’s court proceedings were conducted virtually before a three-member panel comprising justices Datuk Lee Swee Seng, Datuk Hadhariah Syed Ismail and Datuk Gunalan Muniandy.
In the court’s unanimous decision, justice Lee, who led the panel, said the court found no merits in Serba Dinamik’s application for a stay order as the company had not shown any special or exceptional circumstances to be given the order.
He said the court was satisfied that the appeal would not be nugatory if Serba Dinamik was successful in its appeal.
Justice Lee said that Bursa Malaysia Securities Bhd’s rules on disclosure were binding on Serba Dinamik and that public shareholders were entitled to know what had happened.
“Bursa is not asking the applicant (Serba Dinamik) to agree to the contents of the EY report and that the applicant has the liberty to disagree with the report and inform Bursa in the announcement,” he said, adding that it was for the public to judge.
The court ordered Serba Dinamik to pay RM15,000 costs to Bursa.
The bourse regulator and operator had on November 23, 2021 started legal action against Serba Dinamik after the company failed to comply with Bursa’s directive, dated October 22, 2021, requiring the company to disclose the material findings of FFU made by EY.
Serba Dinamik had also filed an action against Bursa and EY in a bid to prevent them from disclosing the FFU and other related matters, which was dismissed by the high court.
On February 14 this year, the high court also rejected Serba Dinamik’s application for a stay of the high court’s order for the company to make a public announcement of the FFU.
Lawyer Mah Lin Kum appeared for Serba Dinamik, while lawyer Datuk Loh Siew Cheang represented Bursa. Lawyer Ng Jack Meng held a watching brief for the Securities Commission of Malaysia. – Bernama, April 11, 2022
