This update underscores the growing global recognition that healthy capital markets require an effective regime of financial reporting. It highlights the enforcement outcomes surrounding false and misleading financial disclosures by public listed companies in Malaysia and the judicial approach in dealing with such breaches.
This update also highlights several Malaysian judicial decisions arising from the issue of false or misleading financial disclosures by listed companies – both in primary offerings of securities as well as post-listing – in the form of continuous disclosures. A factual analysis of the cases shows that a majority of those who breached the law were company directors who were handed deterrent sentences in the form of imprisonment terms.
This update also provides some useful pointers to directors to ensure that they can discharge their duties effectively, and tips on how to avoid some of the pitfalls associated with liability under capital market laws.
For more information, click here to read our Legal Update.
