Posted by soojinhou > 2016-05-08 12:25 | Report Abuse

I refer to the recent uproar from the late disclosure by Mr. Koon Yew Yin on his ceasing to be a substantial shareholder of V.S. Industry Berhad (stock code: 6963). This story is covered in The Star newspaper on 7th May 2016 titled "Koon in the spotlight over untimely disclosures" which can be found here: http://www.thestar.com.my/business/business-news/2016/05/07/koon-in-the-spotlight-over-untimely-disclosures/ I wish to alert the regulators that Mr. Koon Yew Yin has also failed to disclose his becoming a substantial shareholder of Focus Lumber Berhad (stock code: 5197). According to the 2015 Annual Report, Mr Koon Yew Yin and wife Ms Tan Kit Pheng hold a total of 10.04% of shares, way above the 5% threshold requiring disclosure of interest. Mr Koon Yew Yin holds 6.72% while Ms Tan Kit Pheng holds 3.32%. Their names did not appear in the 2014 Annual Report and that should imply that their significant stake is acquired during the later financial year. Mr Koon Yew Yin gets around disclosure rules by dividing their shareholding into multiple accounts. A total of 9 accounts are used, 6 for Mr Koon Yew Yin and 3 for Ms Tan Kit Pheng. None of the accounts exceed the 5% threshold. My question to Bursa is: 1) Is it legal to circumvent disclosure rules by smurfing a substantial stake into multiple accounts? 2) Is it legal to circumvent disclosure rules by smurfing a substantial stake through other persons acting in concert? If it is illegal to do so, I hope that the regulators take action against those breaking disclosure rules to preserve the integrity of the market. To encourage retail participation, Bursa must be free and fair. Information asymmetry will only serve to reinforce the perception of unfairness. Thank you.