Kenmark shares halted as MD goes AWOL

Kenmark shares halted as MD goes AWOL

By Lee Wei Lian May 31, 2010
KUALA LUMPUR, May 31 — Shares of furniture maker Kenmark Bhd were suspended after they sank this morning as news that its managing director went absent without leave spread in the market.

In a response to a query from Bursa Malaysia, Kenmark said only two independent directors of the company were present during the company’s audit committee meeting on May 27 to discuss the company’s fourth quarter results and that managing director James Hwang, a Taiwanese, has not been contactable since last Tuesday.

Kenmark also said that the independent directors discovered at the audit meeting that key company executives, including deputy general manager Goh Kim Chon as well as the finance and administration manager, have also resigned.

The May 27 audit committee meeting could not proceed as there was no representation from the management, and the fourth quarter results that was to be discussed was not made available. The independent directors subsequently tried to contact the MD on his mobile phone but were unsuccessful.

Attempt to contact the Hwang and the other executive directors at the company’s Taiwan office via the telephone and fax also failed.

Kenmark shares had fallen 19 sen to 14 sen by 9.15am and dropped another 3.5 sen before being suspended at 10.10 am. Trading in the shares will resume tomorrow.

The independent directors, Zainabon Abu Bakar and Yeunh Wee Tiong, had on the morning of May 29 gone to Kenmark’s premises at Port Klang. There, they noted that the premises had been sealed and a security guard placed to secure the premises.

Former Kenmark executives informed the independent directors that EON Bank Berhad (EBB) has been notified of the situation and EBB had, on May 27, placed their security guard at the premises. EBB will also be appointing a receiver over the assets of the company.

Kenmark Paper Sdn Bhd, a wholly-owned subsidiary of Kenmark, received a letter today from EBB’s solicitors, dated May 28, advising of the appointment of a receiver.

Kenmark’s website states that the company was incorporated on Sept 15, 1988 and was listed on the Second Board of the KLSE on Nov 3, 1997, before transferring to the Main Board on Sept 3, 2001.

The website also states that part of the manufacturing facilities have been moved to Vietnam.

The independent directors will now make an appointment to meet with Bursa Securities today and said that they were willing to co-operate with all parties concerned.


http://www.themalaysianinsider.com/business/article/kenmark-shares-halted-as-md-goes-awol/