Serba Dinamik Holdings Berhad which has been embroiled over its audit report has filed an Originating Summons at the High Court of Malaya at Kuala Lumpur against Bursa Malaysia.
Particulars of the Origination Summons include seeking relief on the declaration of instruction given by Bursa to appoint Ernst & Young Consulting as a special auditor to conduct a “Special Independent Review” is in excess of power, null and void, and of no effect. A further declaration that the instruction to announce a “Factual Findings Update” made by Ernst & Young Consulting Sdn Bhd is also in excess of power. And that Bursa has no power to instruct and/or direct SDHB to take any steps, action, and/or engage in any conduct which may contravene or otherwise may not comply with MMLR 9.03.
It also has added that the suspension of Serba Dinamik shares being traded on the Main Market is in excess of power shown by the Exchange and that Bursa had acted in contravention of the Capital Markets and Services Act 2007. Serba concluded that the decision to suspend and further suspend the trading in the securities lacked procedural fairness and violated the rules of natural justice. And had ordered that Bursa do forthwith remove the suspension of trading of the securities of SDHB listed on the Main Market.
Serba has listed 19 points in the OS and is contending Bursa on its powers to instruct a listed entity to appoint a specific auditor for an independent review of the audit. It argues that Ernst & Young Consulting Sdn Bhd is not an auditor within the meaning of the “auditor in the MMLR and contends that Bursa cannot exercise a purported power to direct to appoint a person who is not an auditor and direct SDHB to announce any material prepared by a person who is not an auditor.
The application for interim injunctive relief is fixed for hearing on 11th November 2021 and the case management for the OS has been fixed on 17 th November 2021.
Additionallt Serba is also seeking damages from Bursa.
