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Brem managing director Khoo Chai Kaa was fined RM200,000 while five directors were fined RM50,000 each.
They are: executive director Khoo Chai Thiam who retired on Sept 20, 2018; executive director Low Yew Hwa, independent non-executive directors Wong Miow Song, Khoo Hui Keam and Khoo Hui Giok.
They were held to have failed to ensure that payments and advances on behalf of GJH Prestige Sdn Bhd (GJHP) totalling RM26.46 million were fair and reasonable to the company and its shareholders.
Bursa Malaysia said the contravention was viewed seriously as the requirements were one of the key investor protection requirements to ensure proper preservation and employment of a company’s assets or funds.
Brem acquired 49% of GJHP from GJH Holdings Sdn Bhd on Nov 1, 2014; however it made advances to or on behalf of GJHP from Aug 28, 2014 to Aug 22, 2019, prior and subsequent to the acquisition of GJHP as an associate.
The statement said the board had failed to take proper reasonable care and due diligence to make an informed assessment on the advances. There was also no documentation to formalise the transaction between the parties, nor the purposes of the advances.
The result was that by Aug 31, 2017, GJHP had only repaid RM1.6 million with the remaining RM24.86 million still outstanding.
Brem has since been delisted from the stock exchange.
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