Malaysia's securities regulator has charged the founder and chief executive of Supermax Corporation Bhd, one of the world's largest rubber glove makers, with passing on insider information about an unexpected loss at a separate glove firm.
Stanley Thai, 54, was charged at the Kuala Lumpur Sessions Court on Monday with handing a broker non-public information about a higher-than-expected hit to the bottom line of glove maker APL Industries (APLI), in which he was invested.
Audit adjustments meant APLI posted a heftier loss for the year ended June 2007, compared to the unaudited results.
The country's Securities Commission said the information was handed over between Oct 26, 2007 and Oct 29, 2007. The broker, who has been charged separately, then sold shares in APL through accounts belonging to his mother-in-law and mother.
Thai's offence could result in a jail sentence of up to 10 years and a fine of not less than 1 million ringgit ($286,123).
Shares of Supermax, the world's second-largest rubber glove maker by volume, ended 16.5 percent lower at 1.62 ringgit per share, lowest since October 2011. The benchmark stock index ended 2.06 percent lower.
Thai has been a high profile supporter of Malaysia's opposition parties since the country's last general election in 2013.
