SINGAPORE (Nov 11): Between 2017 and so far this year, a total of 54 enforcement actions have been taken against 25 independent directors of 10 listed issuers, says Bursa Malaysia.

A spokesperson for the stock market regulator says common breaches are in the areas of disclosures, such as financial reporting (delay and inaccurate submission of financial statements), and corporate transgressions, such as material or related-party transaction (RPT) requirements and provision of financial assistance. “The penalties typically imposed on independent directors are private/public reprimand and/or fine. So far, based on actions taken from 2007 up to now, the heaviest penalty imposed on an independent director is a public reprimand and total fines of about RM300,000 [$98,548] for financial reporting breaches,” the spokesperson says in an email interview with The Edge Malaysia.

In determining the penalties to be imposed, Bursa says it considers factors such as the facts and circumstances, nature, severity/extent and impact of the breach, antecedent character, background as well as the conduct of the independent director, mitigating and aggravating factors and public interest/deterrent element of the penalty.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook