In the on-going legal battle between Serba Dinamik and KPMG in which Serba Dinamik has sued KPMG for RM4 billion, Bursa Malaysia has given a directive to Serba Dinamik in relation to the appointment of the independent reviewer.
Bursa Malaysia provided a directive to Serba Dinamik pursuant to Paragraphs 2.23 and 2.24 of the Main Market Listing Requirements of Bursa Securities and states that:
- To appoint by 2 July 2021, an international accounting firm or an accounting firm with international affiliation, that has an adequate experience and resources to undertake the Special Independent Review to address the concerns raised by KPMG;
- To ensure the said accounting firm appointed or its affiliates, has a presence in Bahrain and such other overseas locations, where the customers and suppliers which were highlighted by KPMG are located;
- To ensure the scope of the Special Independent Review is as per agreed between the Audit Committee and EY and that Bursa Securities reserves rights to enlarge and extend the scope of work of the Special Independent Review as Bursa Securities may specify; and
- To allow the said accounting firm or the accounting firm with international affiliation appointed to undertake the Special Independent Review, to report directly to Bursa Malaysia and the Securities Commission of Malaysia, periodically on the progress and on the findings.
Serba Dinamik and EY has previously come to an agreement for EY to be the independent reviewer, subject to the satisfaction of conditions imposed by EY, this directive issued by Bursa Malaysia is seen as trying to expedite the process and allow unbiased reporting of the findings directly to the regulators, both Securities Commission of Malaysia and Bursa Malaysia. The consequence of not complying with the directive will constitute a breach of listing requirements where Bursa Securities may impose actions or penalties as it considers appropriate.
Significant changes in Board Members of Serba Dinamik
Lately, there have been significant changes in the board members since the whole saga started. As per the announcement made in Bursa Malaysia, five independent directors have resigned since Serba Dinamik publicly announced to sue KPMG for RM4 billion. Four of the directors quoted their disagreement on Serba Dinamik’s decision to take legal action against KPMG as their reason for resignation.
|Date||Changes in Board|
|14 June 2021||Appointment of new board members as Independent Director|
– Encik Johan bin Mohamed Ishak
– Dato’ Mohamed Ilyas bin Pakeer Mohamed
– Puan Masleena binti Zaid
|17 June 2021||Redesignation of Directors:|
– Dato’ Mohamed Nor bin Abu Bakar from Chairman to Independent Director
– Dato’ Mohamed Ilyas bin Pakeer Mohamed from Independent Director to Chairman
|21 June 2021||Resignation of Dato’ Mohamed Nor bin Abu Bakar as Independent Director due to personal reason.|
|22 June 2021||– Appointment of Encik Johan bin Mohamed Ishak as the Chairman of Audit Committee.|
– Redesignation of Encik Hasman Yusri bin Yusoff from Chairman of Audit Committee to member of Audit Committee.
|25 June 2021||Resignation of the following independent directors due to their disagreement with the Board decision to take legal action against KPMG:|
– Puan Rozilawati binti Haji Basir
– Puan Sharifah Irina binti Syed Ahmad Radzi
– Dato’ Seri Tengku Hasmuddin Tengku Othman
– Encik Hasman Yusri bin Yusoff
Consequently, the above directors have also resigned from other committees of Serba Dinamik that they represented.
Puan Mazleena binti Zaid has also resigned as independent director due to personal commitment.