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

    Approval in General Meeting Required for Disposal of Substantial Property

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

    SSM Prosecuted Company Director for not Obtaining Approval in General Meeting

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    This is an offense under Section 132C(1)(b)Companies Act 1965 (now repealed by Section 223 Companies Act 2016) and is punishable with a 5-year jail term or fine of RM30,000 or both if convicted.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