IN January last year, two former Sea Tackle Sdn Bhd directors, namely Teo Tzi Sin and Wong Poh Wah, were each fined RM100,000 for the offence of abusing their positions by using RM200,000 in company funds to pay themselves unauthorised bonuses.
They were charged under Section 218(1)(c) of the Companies Act 2016, read with Section 34 of the Penal Code.
The case clearly sends a clear message that company directors must carry out their functions and use their given authority in the company's interests, and not for personal benefit.
Under Section 218 of Companies Act 2016, directors and company officers who misuse their positions to benefit themselves or others, or to harm the company, may face up to five years in prison, a fine of up to RM3 million, or both.
