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Singapore, 20 February 2006...The Monetary Authority of Singapore (MAS) announced that civil penalty enforcement action has been taken against Ms. Goh Yu Ming, the former Company Secretary and Group Accountant [1] of G.K. Goh Holdings Limited (GKGH), for contravening the insider trading provisions under section 218(2)(a) of the Securities and Futures Act (SFA).
2. GKGH, a company listed on the Mainboard of the Singapore Exchange Securities Trading Ltd (SGX-ST), announced on 13 January 2005 that it had entered into an agreement to sell its stockbroking business to a subsidiary of CIMB Berhad for approximately S$239.1 million (the Sale Agreement). After the announcement, GKGH share price closed at $0.965, a 9 % increase over the preceding day's closing price of $0.885.
3. Between 30 December 2004 and 10 January 2005, while she was in possession of non-public price sensitive information concerning the Sale Agreement that had been obtained by virtue of her position in GKGH, Ms Goh purchased a total of 408,000 GKGH shares through four separate securities trading accounts. As a result of these purchases, Ms Goh made gains totaling about S$42,000.
4. Ms. Goh has admitted to civil penalty liability for contravening section 218(2)(a) of the SFA and will pay a civil penalty of S$130,500 to MAS without court action for the GKGH share transactions conducted through the four accounts. Ms. Goh cooperated fully with MAS and responded in a timely manner to our requests.
5. This matter was referred to MAS by SGX-ST. Civil penalty investigations were carried out by MAS into the matter in accordance with standard operating procedures.
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Notes to Editor:
(A) Insider Trading under section 218(2)(a) of the SFA
Section 218(2)(a) of the SFA prohibits a person who is in possession of material price sensitive information concerning a corporation (to which he is connected), which he knows is material price sensitive and not generally available, from subscribing for, purchasing, selling, or entering into an agreement to subscribe for, purchase or sell those securities of that corporation.
(B) Connected Person
Section 218(5) of the SFA provides that a person is connected to a corporation if - (a) he is an officer of that corporation or of a related corporation; (b) he is a substantial shareholder in that corporation or in a related corporation; or (c) he occupies a position that may reasonably be expected to give him access to information of a kind to which this section applies by virtue of - (i) any professional or business relationship existing between himself (or his employer or a corporation of which he is an officer) and that corporation or a related corporation; or (ii) being an officer of a substantial shareholder in that corporation or in a related corporation.
Section 218(6) of the SFA provides that for the purposes of Section 218(5), an officer in relation to a corporation includes (a) a director, secretary or employee of the corporation; (b) a receiver, or receiver and manager, of property of the corporation; (c) a judicial manager of the corporation; (d) a liquidator of the corporation; and (e) a trustee or other person administering a compromise or arrangement made between the corporation and another person.
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1 Ms Goh left the employment of GKGH in September 2005 for reasons unconnected to this matter.
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