Companies Commission of Malaysia (SSM), in a statement, said FGP Ventures Sdn Bhd and Khemlani Satesh, 62, were charged on Nov 28.
According to the SSM, the company and Khemlani claimed trial before judge Aminah Ghazali for each of the two charges faced.
The court set Jan 10 next year for mention.
SSM said the accused were attached to FGP Ventures Sdn Bhd, a private limited company at Wisma UOA Damansara II, Changkat Semantan, Damansara Heights here.
They had accumulated preference shares and offered to the public, between Aug 30, 2020 and Aug 29, 2021, the iRPS, which a private company is prohibited from doing.
As such, FGP Ventures Sdn Bhd and the director were each charged with two counts per Section 43 (1) and Section 90 (4) of the Companies Act 2016.
Section 43(1) of the Companies Act 2016 states that a private company is prohibited from offering company shares to the public.
This can be punished under Section 43(5) of the same act which carries a prison sentence not exceeding five years or a maximum fine of RM3 million or both, upon conviction.
Section 90(4) of the Companies Act 2016, meanwhile, states that it is an offence to accumulate company preference shares. This can be punished under Section 90(5) of the same act, which provides for a fine of up to RM500,000 upon conviction.
Senior prosecuting officers Fairuz Othman and Iqbal Yusof handled the prosecution while the company and its director were represented by lawyers Hasif Ghazali and Fithril Hakim Ab Jalil.
“After considering the appeals and arguments of both parties, the judge set bail at RM3,000 for each charge in one surety,” the statement added.
SSM explained that offering preference shares to the public by a private company (Sdn Bhd) is an offence under the Companies Act 2016.
“SSM has taken the legal action as a form of reminder to the corporate community and the public that enforcement action will be taken if there is a violation of the laws regulated by the SSM.
“This is to ensure that corporate governance and compliance with company laws are always practised by corporate citizens and the business community in Malaysia,” it said.