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Article
Publication date: 23 June 2020

Aiman Nariman Mohd-Sulaiman and Mohsin Hingun

This paper aims to examine the potential liability of companies and their board members arising from the use of digital technology and social media as communication and engagement…

Abstract

Purpose

This paper aims to examine the potential liability of companies and their board members arising from the use of digital technology and social media as communication and engagement tools with investors and shareholders.

Design/methodology/approach

The research relies on a qualitative study using legal analysis of corporate and capital market laws as well as the outcome of legal proceedings and regulatory actions to ascertain conduct that could expose companies and boards to liability risks.

Findings

Social media characteristics expose unwary directors and companies to potential liability for oppressive conduct, selective disclosure or misleading statements.

Research limitations/implications

This paper informs boards and companies of the types of conduct that could expose companies and boards to liability when social media is relied on to communicate with shareholders and investors.

Originality/value

The paper contributes to the literature on social media, capital market and corporate communication by presenting the legal perspective concerning reliance on social media as shareholders’ engagement and corporate communication tool.

Details

International Journal of Law and Management, vol. 62 no. 6
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 31 December 2015

Aiman Nariman Mohd Sulaiman, Azza Isma Moideen and Sharon David Moreira

This paper aims to chart the enforcement actions taken by the Malaysian regulatory authorities in relation to illegal investment schemes in Malaysia, and clarifies the various…

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Abstract

Purpose

This paper aims to chart the enforcement actions taken by the Malaysian regulatory authorities in relation to illegal investment schemes in Malaysia, and clarifies the various strategies adopted by the Malaysian regulatory authorities to ensure protection of investors in the capital market. The enforcement actions relate to the Swisscash scheme as well as commodities futures involving crude palm oil and a more recent case involving gold futures. These schemes share similar characteristics with Ponzi schemes that were thrust into the international limelight in the notorious Madoff Ponzi scheme and its allegation of regulatory failure.

Design/methodology/approach

The paper clarifies, by way of case study, public enforcement of illegal investment schemes promoted through the Internet and schemes involving cross-border investments.

Findings

The enforcement powers of the regulatory authorities in Malaysia are being utilized to ensure compliance with the law. The enforcement actions by the regulatory authorities in the afore-stated cases are significant in view of the successful custodial sentence of imprisonment, the regulators’ public enforcement action intended to compensate investors and the most recent case which is unfolding, due to the large number of alleged perpetrators and significant wealth transfer involved.

Originality/value

Given the allegation of regulatory failure in other jurisdictions, this paper enables a view to be formulated of the timeliness and appropriateness of the enforcement actions.

Details

Journal of Financial Crime, vol. 23 no. 1
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 12 July 2013

Aiman Nariman Mohd‐Sulaiman

In recent enforcement actions by several capital market regulators in some common law jurisdictions, the issue of directors' reliance on legal advice in relation to compliance…

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Abstract

Purpose

In recent enforcement actions by several capital market regulators in some common law jurisdictions, the issue of directors' reliance on legal advice in relation to compliance with their statutory duties has been raised. This paper aims to discuss the dilemma faced by directors and regulators in assessing the extent to which reliance on legal advice can provide sufficient protection against allegation of breach of directors' duties and the disclosure obligation.

Design/methodology/approach

This paper discusses recent case studies that highlight the often conflicting regulatory stance.

Findings

These cases indicate that the disclosure conundrum is a real challenge to regulators and directors alike. These enforcement activities have resulted in mixed views as to whether these decisions have rightly upheld the standard of care expected to be exercised by directors or are unduly burdensome and not pragmatic for honest and well‐meaning directors.

Research limitations/implications

The legal position is still evolving in view of the numerous regulatory actions in various jurisdictions regarding financial reporting and disclosure obligation of directors and corporations.

Originality/value

Given the numerous disclosure and reporting obligations that a listed company must comply with and the regulatory enforcement actions that may be taken against the directors, it is important for directors to understand the implication of this case and similar enforcement activities on directors' oversight duty.

Details

Journal of Financial Crime, vol. 20 no. 3
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 1 July 2006

Datuk Simon Shim

To demonstrate that Malaysia has taken serious measures to improve corporate governance landscape.

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Abstract

Purpose

To demonstrate that Malaysia has taken serious measures to improve corporate governance landscape.

Design/methodology/approach

Enforcement actions are used as a case study to show the effect of certain measures undertaken by the regulatory authorities to combat economic crime.

Findings

There was a drop in prosecutions and other enforcement actions following the introduction of compulsory directors trainings.

Research limitations/implications

Recommendations are made for a smart partnership between the government, regulators and the private sector to improve governance in the markets.

Originality/value

Corporate law and securities law require a sound framework that would promote a safe competitive and orderly market for investors in Malaysia.

Details

Journal of Financial Crime, vol. 13 no. 3
Type: Research Article
ISSN: 1359-0790

Keywords

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