PETALING JAYA: A non-profit organisation engaged in public fundraising for refugees, alongside its five directors, have been fined a total of RM242,000 by the Companies Commission of Malaysia (SSM).
According to SSM, the company limited by guarantee (CLBG) committed three offences, including the failure to provide subsequent financial statements within six months, Berita Harian reported.
The CLBG also failed to distribute financial statements ahead of the annual general meeting and to convene such a meeting each calendar year.
“These offences were addressed under Section 248(1)(b), Section 258(1)(b), and Section 340(1)(a) of the Companies Act 2016.
“According to SSM’s records, the company’s last submission of audited financial statements was for the financial year ending Dec 31, 2021.
“Therefore, the company received a fine of RM7,000, while its five directors faced fines of RM47,000 each for the offences committed in 2022,” SSM was quoted as saying.
It was responding to Berita Harian’s inquiry into the monitoring of and action against a non-profit company involved in public fundraising activities in the country.
A CLBG is a public company where the liability of its members is limited to their commitments in the event of the company’s dissolution.
Unlike other companies, CLBGs have distinctive objectives, encompassing various aspects including recreation, entertainment, trade and industry promotion, arts, science, religion, welfare, pension or retirement schemes, and the promotion of any other purpose beneficial to society or the country.
CLBGs engaged in public fundraising activities must also obtain approval from the domestic trade and consumer affairs ministry or the Registrar of Companies through a formal application to SSM.
SSM also said compounds were in progress due to the company’s failure in 2020 to adhere to specific sections of the Companies Act.
It said the failure arose when the company did not maintain proper records in accounting and other records within 60 days of completing transactions related to those records.
“If the offence is proven, the company may face fines up to RM500,000,” it added.