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BURSA Malaysia has fined three directors of financially troubled Kenmark Industrial Co (M) Bhd some RM2.5 million collectively for breaking listing rules.

The three Taiwanese, who have not appeared in public since the furniture company’s troubles began last year, are being punished for Kenmark’s unclear and late statements, among others.

Legal action would be taken against them, namely Hwang Ding Kuo @ James Hwang, Chang Chin-Chuan and Chen Wen-Ling, if they fail to pay the fines before March 10 2011.

It is understood that Bursa Malaysia has sent them letters about the enforcement actions to their last-known address in Taiwan and the directors are aware of them.

Five other directors were also reprimanded by Bursa Malaysia for various breaches of listing rules. They are Zainabon @ Zainab Abu Bakar, Yeunh Wee Tiong, Datuk Abd Gani Yusof, Ho Soo Woon, and Woon Wai En. Kenmark’s troubles began when major shareholder Hwang disappeared and then started selling his shares. During the period, the company’s share, which normally traded at 80 sen, fell to as low as 6 sen.

The shares were picked up on the cheap by Datuk Ishak Ismail, who emerged with a 33.36 per cent stake. He sold the stake 10 days later in mid-June, making a profit as the stock rebounded from record lows.

Question is how is Bursa going to send their demand letter when no one knows where these directors are?

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All companies on Bursa Malaysia are required to provide eDividend option to shareholders by September 1 this year

Share investors have been encouraged to take up a new service under which dividend payments from listed companies will be credited directly into their bank account, instead of through cheques as is the current practice.

All companies on Bursa Malaysia are required to provide this eDividend option to shareholders by September 1 this year as part of the country’s effort to boost payment efficiency.

“There are currently more than four million Central Depository System (CDS) accounts and I hope to see all these account holders come on board to use this new service,” Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff told a media briefing in Kuala Lumpur yesterday.

Shareholders can start providing their bank account details to their stockbrokers from April 19 onwards through the submission of an eDividend form.

They can get the form from their stockbrokers or download it from the stock exchange website.

Individual shareholders must submit the form with a copy of their identification card and a certified copy of their bank statement, or bank account book, together with the original documents for verification.

Share owners are given a one-year grace period to convert to the eDividend service for free. Those who provide the bank details after April 18 next year will be charged a one-off administration fee, which has yet to be determined, Yusli said.

He said the paperless dividend payment system is convenient and faster for shareholders and helps avert potential problem of misplaced, lost or expired cheques.

The eDividend initiative was mooted when Prime Minister Datuk Seri Najib Razak, in his 2010 Budget speech last year, called upon listed firms to offer the service to shareholders.

Out of the 900 or so firms listed on Bursa Malaysia, more than 500 are paying dividends to shareholders. At present, eight, including British American Tobacco, Nestle, Malayan Banking and Bursa Malaysia, are offering eDividend.

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Bursa Malaysia plans to trade metal and add new specifications for crude palm oil (CPO) on Bursa Suq Al-Sila’ this year, as volume was expected to see a huge growth on local and foreign interests.

Raja Teh Maimunah Raja Abdul Aziz, Bursa Malaysia’s global head of Islamic Markets, did not discount the possibility the daily trading volume of Bursa Suq Al-Sila’ would triple or quadruple this year due to increasing number of local and foreign banks participation especially from Gulf Cooperation Council.

“We continue to see an increasing trend as volume in February, a shorter trading month, has exceeded January’s,” she told reporters at the second day of Palm and Lauric Oils Conference and Exhibition: Price Outlook 2010/2011 here today.

Raja Teh Maimunah said almost 90 per cent of domestic banks traded on Bursa Al-Sila’ including three global banks.

“I’m not still at liberty to tell you the daily trade, but you would be able to figure out by looking at Islamic banking assets in the country,” she said.

Launched in August last year, Bursa Suq Al Sila’ is a purposefully-designed exchange-traded platform to facilitate commodity murabahah transactions.

It is the first Internet-based platform in the world with CPO as its underlying base commodity.

“We are working on metal and other specifications of CPO. It has various specifications and Bursa Suq Al-Sila now only has one,” she said, when asked on the specification to be traded.

She said the different specifications would be introduced in stages.

On the reason to introduce metal trading, Raja Teh Maimunah said the exchange was working with commodity suppliers who had the necessary volume and accessibility for such an undertaking.

“Players of metal commodity are familiar with murabahah and the potential is huge,” she said

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