How much company fund was misused for unauthorised bonuses?

Question

Accepted Answer

RM200,000 in company funds was misused for unauthorised bonuses by two former directors.

Two former directors of Sea Tackle Sdn Bhd, Teo Tzi Sin and Wong Poh Wah, were each fined RM100,000 after pleading guilty to misusing RM200,000 in company funds. This sum was used to pay themselves unauthorised bonuses, which were disbursed alongside their salaries on January 30, 2018. The directors changed their plea to guilty in December 2024, having initially denied the charges.
Misuse of Funds for Bonuses

The core of the case involved the unauthorised distribution of RM200,000 from Sea Tackle Sdn Bhd's accounts. Teo Tzi Sin and Wong Poh Wah, in their capacities as directors, approved and disbursed these funds as bonuses for themselves. These payments were made on January 30, 2018, and were not sanctioned by a general meeting of the company's shareholders, as required by law.
Legal Proceedings and Penalties

The former directors faced charges under Section 218(1)(c) of the Companies Act 2016, read together with Section 34 of the Penal Code. These sections relate to the abuse of a director's position for personal gain and the commission of offences by several persons in furtherance of a common intention. After initially pleading not guilty, both Teo Tzi Sin and Wong Poh Wah changed their plea to guilty on December 20, 2024, at the Kuala Lumpur Sessions Court.
Sentencing and Fine Settlement

As a consequence of their guilty plea, each director was sentenced to a fine of RM100,000. The court stipulated a six-month prison term for either director if the fine was not settled. Following the court's decision, both Teo Tzi Sin and Wong Poh Wah paid their respective RM100,000 fines immediately, thus avoiding the custodial sentence. The prosecution was conducted by officers from the Companies Commission of Malaysia (SSM).

Reading history

Hide →

This history is cleared when the page is closed.

How much company fund was misused for unauthorised bonuses?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends