Company Director Charged for Disposal of Substantial Property Without Approval in General Meeting

Are you aware that approval in General Meeting is required for disposal of the company’s substantial asset/property?

The Companies Commission of Malaysia or Suruhanjaya Syarikat Malaysia (“SSM”) prosecuted a company director in Tawau for failure to obtain approval for disposal of the company’s substantial asset/property.

The company director of Darvel Bay Hybrid Aquaculture Sdn Bhd was charged at Tawau Sessions Court on 22 January 2018 for the disposal of a substantial portion of the company’s property, valued at RM800,000 on 6 April 2015 without the approval of the company in a general meeting.

This is an offense under Section 132C(1)(b)Companies Act 1965 (now repealed by Section 223 Companies Act 2016) and is punishable with a 5-year jail term or fine of RM30,000 or both if convicted.

Source: SSM

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Bizboard has a team of qualified and licensed company secretaries as required in the Companies Act 2016 and Companies Commission of Malaysia.

Our highly qualified team has worked throughout various industries and has extensive knowledge to assist the company in secretarial matters.

For more information contact us.

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