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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?

Related Posts:

• Kenmark to suspend on August 9, 2010
• Kenmark update : SC freezes Ishak’s gain
• Kenmark CEO ill in China
• Kenmark under receivership, share plunged 68%
• Dividend via direct payment to bank account

Trading in Kenmark Industrial Co (M) Bhd shares will be suspended from Aug 9 until further notice as the company has failed to submit its audited accounts for the financial year ended March 31 to Bursa Malaysia within the stipulated timeframe.

The troubled furniture manufacturer had informed Bursa last Tuesday that it would miss the July 31 deadline to submit its audited accounts, after Bursa rejected its application for an extension.

Kenmark hogged the headlines in early June after its key management and Taiwanese executive directors went missing, leaving the company in a lurch.

The case is still under investigation, and it is understood that the SC may invoke its powers under the newly created Section 317A of the Capital Markets and Services Act 2007 (CMSA) to pursue any wrongdoings by Kenmark officials.

The Securities Commission (SC) then started investigations on the company on non-submission of financial statements, default in payments and the missing directors.

Days later, former director Datuk Ishak Ismail appeared as the white knight and emerged as the single largest shareholder after acquiring a 32% block in Kenmark, only to sell off his entire stake within two weeks for a massive profit.

The SC had on June 15 obtained a court injunction to stop Ishak from using the RM10.2mil proceeds from his sale of 58.7 million Kenmark shares.

The case is still under investigation, and it is understood that the SC may invoke its powers under the newly created Section 317A of the Capital Markets and Services Act 2007 (CMSA) to pursue any wrongdoings by Kenmark officials.

Related Posts:

• Bursa fined Missing Kenmark Directors
• Kenmark update : SC freezes Ishak’s gain
• Kenmark CEO ill in China
• Kenmark under receivership, share plunged 68%

The Securities Commission (SC) has obtained an injunction to prevent Datuk Ishak Ismail from using the RM10.2 million he got from selling 58.7 million shares in financially troubled Kenmark Industrial Co (M) Bhd (7030).

Ishak, who ceased being a substantial shareholder upon the sale, is suspected of breaching securities laws, the SC said in a statement yesterday.

It is believed that this is the first time the SC has secured a court order to freeze proceeds from a share sale.

The Kuala Lumpur High Court has also ordered Ishak to give full and complete details of his assets, whether in Malaysia or elsewhere, within four days.

Ishak, the former deputy executive chairman of KFC Holdings (Malaysia) Bhd, had emerged as Kenmark’s biggest shareholder with a 32.36 per cent stake early this month.

He bought the shares on June 1 and 2 while others were busy dumping the stock in panic upon hearing that Kenmark managing director James Hwang was missing and that it was late with its financial results.

(Hwang later came out to say he had been sick and uncontactable in China.)

The furniture maker’s share price, which had plunged to as low as 3.5 sen a share on June 1, was trading at 26 sen a share by June 4, boosted by news that Ishak had bought the substantial stake.

He is said to have sold the nearly 60 million shares linked to him on June 9 and 11.

Kenmark, in a filing to the stock exchange yesterday, said it did not know who the shares were sold to. It also has not been notified of any changes to the board since the sale.

It has, however, requested Bursa Malaysia Depository for the latest record of depositors and will be able to identify the new controlling shareholders once that information is available.

Kenmark, the third most actively traded stock yesterday, shed 1 sen to 10 sen.

Ishak, meanwhile, could not be reached for comment yesterday. A news report earlier quoted him as saying that he had sold the shares because Hwang had not returned to manage the company as agreed when he first bought the shares.

Hwang, a Taiwanese, and another director, Chen Wen-Ling, have cut their holdings in the PN17 company and own 8.41 per cent and 7.76 per cent stakes respectively as at June 7.

The SC said investigations are actively being pursued on possible breaches of securities laws within Kenmark, especially with respect to its previous board, management and key shareholders.

Executive director Ho Soo Woon is currently in charge of Kenmark’s day-to-day management and operations.

Kenmark said yesterday that employees at its Port Klang operations had resumed work as of June 7. Its wood division operations have also resumed and the management is trying to fulfil outstanding orders.

As for the printing division, the management is assessing equipment and machinery to enable the company to meet its deliveries.

It also said that its assets in Vietnam are mostly intact and it is talking with suppliers and financiers to resume operations there as soon as possible.

Related Posts:

• Kenmark CEO ill in China
• Bursa fined Missing Kenmark Directors
• Kenmark to suspend on August 9, 2010
• Kenmark under receivership, share plunged 68%