Bursa KL: Take drastic actions against the directors of MAS & Tune Air

Source: Wee Choo Keong

Prior to the inking of the secret MAS – AirAsia share swap and the “Collaborative Frameworks” agreements , both MAS and Tune Air Sdn Bhd did not make any announcement that they were negotiating for the secret MAS – AirAsia share swap. Both the directors of MAS and Tune Air Sdn Bhd’s are duty bound to disclose to Bursa KL about the said negotiations.
Bursa KL’s Disclosure Guide clearly state their duties as follows: 
Disclosure Guide Bursa KL Rule 9.03 (2) provides:
“An information is considered material if it is reasonably expected to have a material effect on the –
(a) price,value or market activity of any of its securities; or
(b) investors decision in determining his choice of action.”
Rules 1.11
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In making the assessment of whether an event or information is material for the purpose of announcement, it is important for the listed issuer to take into account relevant factors such as the following:
(a) the anticipated impact of the information on the listed issuer’s entire scope of activities; or
(b) the anticipated impact of the information on the listed issuer’s financial position or performance; or
(c)  the relevance of the information on the factors that determine the price of the listed securities
Bursa KL has has very wide powers to take actions against both companies under Rule 16.9 (1) (a) as follows:
issuance a caution letter;
issuance a private reprimand;
issuance of public reprimand;
issuance of a fine not exceeding RM1 million;
issuance of a letter directing the listed issuer, management company or trustee to rectify the non-compliance, which direction will remain enforce until revoke;
imposition of one or more condition (s) for compliance;
non-acceptance of applications or submissions, with or without condition imposed (after consultation with SC);
imposition of condition (s) on the delivery or settlement of trades entered into in respect of the listed issuer’s securities;
suspension of trading of the listed securities;
delisting of a listed issuer or any class of its listed securities;
mandate education or training program to be undertaken/implemented by the listed issuer for its directors and/or management; or
any other action which the exchange may deem appropriate.