SC dismisses Lotte Chemical Titan’s review application

PETALING JAYA: The Securities Commission Malaysia (SC) has maintained its decision to reprimand and impose penalties amounting to RM2.19 million on Lotte Chemical Titan Holding Bhd, its executive directors and advisers.

In a statement today, the SC said it has dismissed the review applications by Lotte Chemical Titan and other relevant parties for their failure to inform the SC of material developments prior to the company’s listing in 2017.

The parties reprimanded by the SC are Lotte Chemical Titan as the issuer, executive directors Lee Dong Woo and Lee Kwan Ho, reporting accountant Ernst & Young (EY) and the principal adviser to Lotte Chemical Titan’s listing exercise Maybank Investment Bank Bhd (Maybank IB).

The SC has also maintained its directive for EY and Maybank IB to conduct a comprehensive review and assessment of their policies and processes related to their roles as reporting accountant and principal adviser respectively.

However, the application to the SC to review the imposition of reprimand by three independent non-executive directors namely Tan Sri Abdul Rahman Mamat, Tan Sri (Dr) Rafiah Salim and Ang Ah Lek were allowed and the reprimand was set aside.

Meanwhile, Lotte Chemical Titan’s non-independent non-executive director Cho Seongtaeg’s further reply in relation to his application for review is still pending.

To recap, the SC reprimanded the fined the company, its two executive directors and EY on July 9, 2018 for failure to inform the SC of material developments prior to the company’s listing.

The SC had also reprimanded and fined Maybank IB for its failure to carry out appropriate due diligence on the company.

The SC imposed a fine of RM560,000 on Lotte Chemical Titan and a fine of RM297,500 on EY while the two executive directors were fined RM441,000 each and Maybank IB was fined RM450,000.

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