PETALING JAYA: Trive Property Group Bhd   has explained that the Securities Commission’s (SC) sanctions on five of its directors were due to findings that Trive had failed to perform an impairment assessment on its development expenditure amounting to RM21.1mil as at July 31, 2014, in its audited financial statements for the period.

In a Bursa Malaysia filing yesterday, Trive said the breach of Section 369(b)(B) of the Capital Markets and Services Act 2007 was for knowingly authorising the furnishing of the audited financial statements 2014 that was false or misleading to the SC and Bursa Malaysia Securities Bhd, in relation to the non-impairment of the development expenditure.

Given the severity of the directors’ failure to discharge their duties in ensuring that financial statements submitted to the regulators are true and fair, the SC imposed a total fine of RM2.55mil on the directors.