Director of a local incorporated company has been convicted by the court and he was ordered to pay a fine of RM15,000 or face 5 months imprisonment for making a false or misleading statement to Companies Commission of Malaysia (CCM) in an application to strike off the company under Section 308(1) of Companies Act 1965.

The said director made a false declaration to CCM that the company had not carried out any business since incorporation. Upon the submission, CCM undertook an investigation which lead to the discovery of the fact that the company was indeed active during the period. The director was subsequently charged in the court for violating the Companies Act.

Providing misleading information to CCM is a serious offence which could lead to fine and/or imprisonment upon conviction.

If you intend to close down a company, please seek advice from a qualified Company Secretary. There are various options available, including strike off application and members voluntary winding up.

Disclaimer: Every effort has been made to provide accurate information. However, the information and regulations contained in this article are subject to changes and amendments by the relevant authority at any time. As such, the information in this article may not be current.

And the information provided in this article is general commentary only and shall not be considered as advice or recommendation. As all tax situations are specific to their facts and will differ from the situations in this article - if you have specific tax questions you should consult a licensed tax agent.