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Computer Forms Seeks Judicial Review of Bursa Reprimand Over Failed EV Venture

Computer Forms and several directors are seeking judicial review of Bursa's reprimand and RM2 million fines linked to a failed EV joint venture.

Computer Forms (Malaysia) Bhd is seeking leave to begin judicial review proceedings against Bursa Malaysia Securities’ decision over listing requirement breaches tied to its failed electric vehicle (EV) joint venture, The Edge Malaysia reported, citing a Bursa filing.

The High Court application was filed on Monday by the company together with several of its directors, whom it did not name. Case management for the leave application is set for Nov 16.

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Background to the Bursa Action

On July 21, Bursa Securities publicly reprimanded Computer Forms and fined eight current and former directors a total of RM2 million for breaching listing requirements in connection with a proposed joint venture with EA Mobility Holding Co Ltd.

The venture was announced in September 2022 as the company’s entry into Malaysia’s EV industry. Under an agreement signed in January 2023, Computer Forms was required to secure confirmed purchase orders and inject RM12.5 million into the joint venture company by June 30, 2023.

Bursa Securities found that the company failed to make timely, complete and accurate disclosures on material developments in the venture, leaving investors without the information they needed to make informed decisions.

Directors Fined

Former executive director Datuk Hoo Swee Guan received the largest fine, RM450,000, for five breaches. These related to the joint venture agreement, a put option notice, disclosure of the agreement’s termination and misrepresentations in the shareholders’ agreement.

Independent non-executive chairman Tan Sri Mazlan Lazim, former executive director Pang Nan Yew, independent non-executive director Wong Kok Seng and former independent non-executive director Kho See Yiing were each fined RM300,000 over the announcement of the agreement and the later termination disclosures.

Former executive director Datuk Justin Lim Hwa Tat was fined RM150,000, while former independent non-executive vice-chairman Datuk Seri Tan Choon Hwa and former independent non-executive director Tan Li Sin were fined RM100,000 each for similar breaches.

Computer Forms Judicial Review and Share Price

Computer Forms prints and distributes computer forms, stock forms and specialised forms. Its shares closed half a sen, or 7.69%, higher at seven sen on Tuesday, giving it a market capitalisation of RM22 million.

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