Transmile Possible Delisting: File Civil Suit
Transmile: Files civil suit against former CEO Gan
In a rare move, a listed company that is facing a possible delisting if it does not regularise its financial position has taken a civil suit against its former principal executive for grossly overstating the company’s revenue more than three years ago, an incident that was uncovered in 2007. Transmile Group Bhd announced that it has filed a civil suit against its former CEO Gan Boon Aun and former CFO Lo Chok Ping for failing in their duties and trust towards the company. It claimed the defendants had breached their duty of fidelity and trust to the company by grossly overstating the revenue and causing questionable payments and receipts pertaining to transactions between its two wholly-owned subsidiaries and several parties. (Financial Daily)