PUTRAJAYA: The Court of Appeal here today enhanced the fine imposed on two directors and a shareholder for interfering in the administration of justice by disposing of assets belonging to their company in the midst of a winding-up petition.
Tan Ken Meng and his wife Khoo Chun Fun, both directors, had their fines for contempt of court increased from RM5,000 each to RM50,000 each, or two month’s jail.
Shareholder Wong Tee Ming had his fine raised from RM5,000 to RM10,000, or one month in jail.
They have been given until 4pm tomorrow to settle the fines or warrants of arrest will be issued.
On March 9 last year, Seremban High Court judge Azman Abdullah fined them RM5,000 each after finding them guilty.
The three appealed against their conviction for contempt of court, which was dismissed today by a three-member bench chaired by Has Zanah Mehat. Others on the bench were Che Mohd Ruzima Ghazali and See Mee Chun.
However, the court allowed the appeal of Lim Shen Lee, also a shareholder in the company, against the inadequacy of the sentence against the trio.
Has Zanah said it was proven beyond reasonable doubt that there was contempt of court.
Tan was the managing director of Ho Shen Lee (M) Sdn Bhd and held 51% share of the company while Wong had a 3% stake. Khoo held no equity.
Lim, who held a 46% share in the company which dealt with manufacturing and sales of building materials, had filed the petition in June 2018 after he was removed as a director and replaced by Khoo.
The three had applied for an order from judge Abu Bakar Jais to dispose of some of the company’s assets but were refused as the application was not bona fide. The trio then called for an EGM and subsequently disposed of the company’s assets amounting to RM400,000.
Lim, represented by Lim Kien Huat, Ali Redha and Nelson Kho, then filed a contempt proceeding in February 2019 and Azman, who replaced Abu Bakar, found them guilty.
Lawyer Annou Xavier, who was assisted by Yong Jia Wei, said he was awaiting instructions from the three whether to file an appeal.