KUALA LUMPUR: A director of a date palm plantation company was charged at the sessions court here today with offering an unregistered date palm investment scheme to the public, by promising a lucrative return from the crop.
Chin Yoong Fung, 37, pleaded not guilty after the charge was read out before justice Manira Mohd Nor.
Chin was alleged to have offered the public to buy the share in the date palm investment scheme without the approved deed by Companies Commission of Malaysia (SSM).
He was alleged to have committed the offence at Date Palm Agro Berhad at 2-37, PV 128, 128 Jalan Genting Kelang, Setapak, here between Sept 13, 2015, and Sept 14, 2016.
The charge, under Section 91(1) of the Companies Act 1965 and punishable under Section 94(1)(a) of the same act, provides for a five-year imprisonment, or fine of RM100,000, or both, upon conviction.
SSM prosecuting officer Faizal Mahdi Mahmud offered RM20,000 bail with one surety to Chin, but lawyer Datuk S. Arumugam rejected the bail offer on grounds that there was no evidence that his client would not appear in court, as he had always been cooperative and able to present himself whenever called by the SSM.
Manira did not allow Chin any bail and warned the accused that if he failed to appear in court on the next mention, the court could issue an arrest warrant.
The court set March 27 for remention of the case.
According to SSM, any registered company wishing to make an offer of an investment scheme must first register the scheme and comply with the rules set out to protect the rights of the shareholder and enable SSM to monitor the progress of the scheme.
It is learned that 739 people participated in the date palm investment scheme involving more than RM11 million, in which each investor would earn a profit based on the number of date palm trees they invested in.
Each tree was said to be worth between RM3,000 and RM5,000. — Bernama