Federal court dismisses Stone Master Corporation to appeal for breaching securities laws

KUALA LUMPUR: The Federal Court had on Wednesday unanimously dismissed Stone Master Corporation Bhd's then deputy managing director Chan Chui Mei application for leave to appeal to the court, the Securities Commission said.

The leave for appeal was in relation to the decision of the Court of Appeal on March 3, 2022, affirming the High Court's decision in 2019 which ruled Chan had breached securities laws namely causing wrongful loss to Stone Master in March 2016.

"The SC commenced civil action on September 23, 2016 against Chan for breaching sections 179, 317A and 370 of the Capital Markets and Services Act 2007 (CMSA)," it said in a statement today.

Stone Master had entered into agency agreements with 23 foreign companies for the exclusive rights to market and promote their products in Malaysia and Singapore.

Stone Master then paid RM11.59 million in the form of non-refundable deposits to the local representatives of the foreign companies.

The SC said it found that RM11.54 million of the deposits were then transferred into Chan's personal bank accounts.

On December 17, 2019, the High Court ruled in favour of the SC and ordered Chan to pay a total sum of RM12.54 million to the SC comprising the amount wrongfully deposited into her personal bank accounts and civil penalty of RM1 million.

In addition, Chan was also barred from being a director of any listed company for five years.

In dismissing Chan's application for leave to appeal, the Federal Court also ordered Chan to pay costs of RM30,000 to the SC.

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