PETALING JAYA: A director of two companies has pleaded not guilty in the Butterworth sessions court to establishing a timber business that competes against the two companies without the approval of shareholders.
Tan Chong He, 50, a director of Kualiti Ayu Sdn Bhd and Seong Eng Sdn Bhd, was charged with setting up Nicenco Resources Sdn Bhd without the approval of the respective companies’ annual general meetings.
He was accused of establishing Nicenco Resources for personal benefit through the sale of timber worth RM377,990 in Tasek Gelugor, Seberang Perai, between November 2020 and March 2021.
The charge carries a maximum penalty of five years’ jail or a fine not exceeding RM3 million, or both.
He was allowed RM5,000 bail.