The directors of the company were also reminded that it is their duty to ensure compliance with the main market listing requirements (Main LR).

In a media statement issued today, Bursa noted that ToyoVen had proposed a single-tier dividend for its financial year ended Nov 30, 2021.

However, the company announced on Jan 31, 2022 that it was withdrawing the dividend in contravention of the Main LR.

Among other things, the Main LR states that once a dividend has been declared or proposed, no subsequent alteration is allowed.

The directors at that time of the withdrawal were Yusoff Daud, Song Kok Cheong, Chew Cheong Loong, Lim Soek Fun, Tham Kut Cheong, Chan Kee Eng, Song Hsiao May and Lim Guan Lee.

Bursa said it viewed the breach seriously as the requirement to not make any subsequent alteration to the dividend entitlement is a fundamental obligation of listed companies.

“It is also of paramount importance to ensure market certainty and integrity that the interests of shareholders and investors are not compromised,” it added.

ToyoVen had explained that despite the net loss of RM12.9 million in the quarterly results ended Sept 30, 2021, it had decided on the dividend as it still had sufficient retained earnings brought forward from previous financial years.

But in withdrawing the dividend on Jan 31, 2022, it said there was insufficient retained earnings.