It’s not uncommon for investors that holds the smaller piece of the pie to suffer in silence when the big “pie-holders” make decisions that can cause financial losses to the smaller pie-holders.
To know more about how the minority pie-holders’ interest can be protected, read more about it at the watchdog’s own website. Surprisingly, there’s not much documentations on previous case studies where investors can view directly from the website. With six years of incorporation, one would expect to be able to obtain more useful information from the archives. Maybe you need to be a “registered and paid” member to know more. Sigh, nothing useful is free these days…
SC reimburses Padiberas investors
The Securities Commission (SC) has reimbursed close to 90% of the investors, or about 275 individuals, under a compensation scheme for losses incurred from insider trading involving Padiberas Nasional Bhd shares.In a statement, the SC said a civil suit against KL City Securities Sdn Bhd and Wan Azmi Wan Abdul Rahman, requiring them to hand over profits in connection with the insider trading of Padiberas shares, resulted in the recovery of RM2.08mil from the brokerage, twice the amount KL City Securities had gained from the insider trading of Padiberas shares.
It added that KL City Securities and Azmi were also required to pay penalties of RM300,000 and RM150,000 respectively.
In short, it’s corporate governance we are talking about here…and there are many cases in the past that reflects how the minority pie-holders has been taking the short end of the stick.
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