KUALA LUMPUR (Sept 17): Two directors of Transmile Group Bhd, who were sentenced to one year in jail and fined RM300,000 for authorising a misleading statement to Bursa Malaysia in 2007, have had their appeals against their sentences dismissed by the Kuala Lumpur High Court.

Shukri Sheikh Abdul Tawab and Jimmy Chin Keem Feung were both convicted in the Sessions Court in 2011 for authorising the furnishing of a misleading statement to the exchange in Transmile's quarterly report on unaudited consolidated results for the financial year ended Dec 31, 2006.

The duo were found guilty by the Sessions Court under section 122B(b)(bb) of the Securities Industry Act 1983. 

In a statement today, the Securities Commission Malaysia (SC) said Chin and Shukri, were at the material time, members of Transmile's audit committee and board of directors.

During the trial, the SC said 11 witnesses were called by the prosecution while both accused testified when their defence was called.

"Justice Datuk Mohd Azman Husin in upholding the conviction and sentence imposed by the Sessions Court, stated that the prosecution had established the ingredients of the offence and that the Appellants had failed to cast a reasonable doubt on prosecution's case," said the SC. 

The judge also affirmed the sentence which had been imposed by the Sessions Court on Shukri and Chin which was imprisonment for a term of one year and a fine of RM300,000 (in default six months imprisonment). 

Meanwhile, the SC said the case against Gan Boon Aun and Khiudin Mohd, who were executive directors of Transmile at the material time, is currently pending in the Court of Appeal.

The charges brought by the SC against Gan and Khiudin were also with respect to misleading statements made in the same quarterly statement, which was submitted by Transmile to Bursa Malaysia in February 2007, it added. 

Both accused had, on 22 March 2011, been called to enter their defence after the close of the prosecution case. 

However, the case has been stayed, pending the disposal of the appeal at the appellate courts.