KENANGA ANNUAL REPORT 2017

43. CONTINGENT LIABILITIES Group and Bank 2017 RM’000 2016 RM’000 (a) Bank guarantee issued to Bursa Malaysia Securities Clearing Sdn Bhd in relation to the Bank’s obligation to contribute to the clearing guarantee fund. – 1,201 (b) On 17 August 2012, the Plaintiffs filed a claim against ECM Libra Investment Bank Berhad (“EIBB”) (which had, on 14 December 2012, been merged with the Bank vide a vesting order) for the return of the balance amount in two (2) margin accounts held under the Plaintiffs’ names. The said amount was used by EIBB towards satisfaction of a judgment debt owing by a judgment debtor (“Judgment Debtor”). The Judgment Debtor claimed that the monies held in the said margin accounts under the Plaintiffs’ names belonged to him and represented to EIBB that the monies may be used towards satisfaction of his judgment debt to EIBB. EIBB had commenced third party proceedings against the Judgment Debtor and had applied to convert the Originating Summons into a writ action. The converted action is now known as Suit No. 22NCC-1315-08/2012) (“Writ Action”) as described in paragraph (c) below. – 2,050 (c) The Judgment Debtor remains a third party in the Writ Action. He also applied to intervene to be named as a Defendant. The High Court allowed his application. He has since filed his Defence and Counterclaim against the Plaintiffs. The trial commenced on 22 July 2013 with various continuation dates and concluded on 18 February 2014 and the High Court has dismissed the Plaintiffs claims on 16 May 2014. The Plaintiffs have filed an appeal on 11 June 2014 and the appeal had concluded on 20 June 2016. On 8 November 2016, the Court of Appeal dismissed the Appellants’ appeal with costs of RM25,000 to EIBB. The Plaintiffs have filed a Notice of Motion for leave to appeal to the Federal Court. The Federal Court has on 4 October 2017 dismissed the Appellant’s application. – 1,054 The above shall not longer be regarded as contingent liabilities to the Group and the Bank and no provisions are necessary as at reporting date. Annual Report 2017 31 December 2017 165 notes to the financial statements