How does the Companies Act 2016 define breaches related to payments?

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The Companies Act 2016 Outlines Specific Provisions for Payment-Related Breaches by Companies

Bonus payments made by TH Properties in 2017 and 2018 were found to have contravened specific sections of the Companies Act 2016, namely Sections 230(2), (3), and (4). These contraventions constitute offences under the Act, as stipulated by Section 230(7). The Companies Commission of Malaysia (CCM), also known as Suruhanjaya Syarikat Malaysia (SSM), is vested with the authority to investigate such breaches, in accordance with Section 27D of the CCM Act 2001.
Provisions Regarding Company Payments

While the precise definitions within Sections 230(2), (3), and (4) of the Companies Act 2016 concerning payment breaches are not detailed, the legislation clearly establishes that such contraventions are considered offences. These sections likely govern the permissible use and distribution of company funds, including the circumstances under which payments such as bonuses can be made. Section 230(7) then classifies these breaches as statutory offences, indicating that non-compliance carries legal repercussions.
Enforcement and Prosecution Authority

The CCM is the primary statutory body responsible for ensuring adherence to corporate and business laws in Malaysia, including the Companies Act 2016. Through its dedicated Prosecution Section, the CCM registers and prosecutes cases involving offences committed under the Act. However, the institution of any prosecution requires the consent in writing of the Public Prosecutor, as mandated by Section 36 of the CCM Act.
Related Offences and Corporate Law Principles

Beyond breaches of the Companies Act, the police may also investigate related offences under the Penal Code, such as dishonest misappropriation of property under Section 403. This offence involves the dishonest misappropriation or conversion of another person's property. In the context of corporate law, an incorporated company, such as TH Properties, is recognised as a separate legal entity distinct from its directors and shareholders. Consequently, the property of the company belongs to the company itself and not to its individual directors or shareholders. Bonuses, being payments derived from a company's funds, are therefore considered company property.

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How does the Companies Act 2016 define breaches related to payments?

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