Company Director Charged With Establishing Business Without AGM Approval

A director of two companies pleaded not guilty in the Sessions Court here today to a charge of establishing a business without the approval of their respective annual general meetings for personal benefit. Tan Chong He, 50, was charged as a director of Kualiti Ayu Sdn Bhd and Seong Eng Sdn Bhd, without the approval of the respective companies' annual general meetings, of being involved in a business that competes with the said companies by establishing Nicenco Resources Sdn Bhd. The accused was charged with establishing Nicenco Resources Sdn Bhd to obtain, directly or indirectly, benefits for himself through the sale of timber worth RM377,990. Tan was charged with committing the act in Kubang Menerong, Kampung Selamat, Tasek Gelugor, between Nov 2, 2020, and March 29, 2021, under Section 218(1)(e) of the Companies Act 2016, punishable under Section 218(2) of the same Act. He faces a maximum imprisonment of five years or a fine not exceeding RM3 million, or both, if convicted. Judge Noor Aini Yusof fixed bail at RM5,000 with one surety and set the next mention of the case for Nov 11, 2024. Source: BERNAMA News Agency