June 30, 2019
KUALA LUMPUR – Kuala Lumpur Sessions Court on June 28 convicted two former directors of Bestino Group Bhd (Bestino) for distributing application forms for Bestino redeemable preference shares without a copy of a prospectus registered by the Securities Commission Malaysia (SC).
Chong Yuk Ming, 57, who is also the founder of Bestino, was fined RM600,000 in default six months imprisonment, while Balachandran a/l Shanmugan, 64, was fined RM400,000 in default four months imprisonment for the offence that took place between November 3, 2008 and June 16, 2009. They were also ordered to serve one-day jail.
The conviction came after a full trial where 11 witnesses testified for the prosecution while both Chong and Balachandran testified for the defence. They were charged in 2011.
The offence, under section 232(2) of the Capital Markets and Services Act 2007, carries a punishment of fine up to RM10 million or an imprisonment term up to 10 years or both.