PUTRAJAYA: The Court of Appeal here has dismissed Serba Dinamik Holdings Bhd's application for the stay of a High Court order compelling it to make public a Factual Findings Update (FFU) on its finances pending disposal of an appeal.

       Serba Dinamik had sought the stay order pending disposal of its appeal against the Feb 7 decision directing the oil and gas company to make a public announcement of the FFU by Ernst & Young Consulting Sdn Bhd.

       Ernst & Young Consulting was appointed to conduct a special independent review of Serba Dinamik's financial accounts for a 12-month period ending Dec 31, 2020, within two market days.

       The Court of Appeal proceeding on Monday (April 11) was conducted virtually before a three-member panel comprising Justices Datuk Lee Swee Seng, Datuk Hadhariah Syed Ismail and Datuk Gunalan Muniandy.

       In the court's unanimous decision, Justice Lee, who led the panel, said it found no merits in Serba Dinamik's application as the company had not shown any special or exceptional circumstances to be given the stay order.

       He said the court was satisfied that the appeal would not be of no value if Serba Dinamik was successful in its bid.

       Justice Lee said Bursa Malaysia Securities Berhad’s rules on disclosure were binding on Serba Dinamik and that public shareholders were entitled to know what had happened.

       "Bursa is not asking the applicant (Serba Dinamik) to agree to the contents of the (Ernst & Young Consulting) report and that the applicant has the liberty to disagree with the report and inform Bursa in the announcement," he said, adding that it was for the public to judge.

       The court ordered Serba Dinamik to pay RM15,000 costs to Bursa.

       The bourse regulator and operator had on Nov 23 started legal action against Serba Dinamik which failed to comply with an Oct 22 directive requiring the company to disclose the material findings of FFU.

       Serba Dinamik had also filed an action against Bursa and Ernst Young Consulting in a bid to prevent them from disclosing the FFU and other related matters, which was dismissed by another High Court.

       On Feb 14, the High Court also rejected Serba Dinamik's application for a stay of the order for it to make a public announcement of the FFU.

       Lawyer Mah Lin Kum appeared for Serba Dinamik, while Datuk Loh Siew Cheang represented Bursa. Ng Jack Meng held a watching brief for the Securities Commission of Malaysia. – Bernama