Company Directors Fined for Misusing Company Funds

Background

Two former company directors, Teo Tzi Sin and Wong Poh Wah, of Sea Tackle Sdn Bhd, have pleaded guilty to misusing company funds amounting to RM200,000 as bonus payments to themselves without the company’s approval. The incident occurred on January 30, 2018.

The Charges

The duo was charged under section 218(1)(c) of the Companies Act 2016, read with Section 34 of the Penal Code, for abusing their position as company directors for self-benefit. The prosecution was conducted by prosecuting officers Nurul ‘Ain Shafie and Nurul Nabila Azmi, from the Companies Commission of Malaysia (SSM).

The Plea and Sentencing

Initially, Teo and Wong pleaded not guilty to the charge. However, they changed their plea on December 13, 2021. Judge Norina Zainol Abidin set December 20, 2021, to hear the facts of the case and sentencing.

The Fine

Teo and Wong were each fined RM100,000 for the offence. They paid the fine, bringing an end to the case.

Conclusion

The case serves as a reminder of the importance of ethical business practices and the consequences of misusing company funds. It is crucial for company directors to prioritize the interests of the company and its stakeholders, rather than engaging in self-serving activities.

FAQs

Q: What was the amount of company funds misused by Teo and Wong?
A: RM200,000

Q: What was the charge against Teo and Wong?
A: Abusing their position as company directors for self-benefit

Q: Who conducted the prosecution?
A: Prosecuting officers Nurul ‘Ain Shafie and Nurul Nabila Azmi, from the Companies Commission of Malaysia (SSM)

Q: Who represented Teo and Wong in court?
A: Lawyer Ong Weng Li