The Companies Commission of Malaysia (SSM) said a private company based on its share composition, FGP Ventures Sdn Bhd has been fined for offering a collection of preference shares known as “Islamic Redeemable Preference Shares” (iRPS) without having a company resolution to offer such shares.
Under Section 90(4) of the Companies Act 2016 states that it is an offense for any private company to make available preference shares without having a company resolution which can lead to a conviction of not more than RM500,000.
On 28 November 2023, FGP Ventures Sdn Bhd and its director, Khemlani Satesh were charged with four charges in relation to the offering of iRPS shares to the public. FGP Ventures Sdn Bhd and Khemlani have made a share offering to the public by depositing money to the company for a set period with guaranteed interest according to agreed terms. Both also made the allocation (allotment) of the preference shares without having provisions in the company’s resolution at that time. The company and the directors were charged a compound of RM325,000 for the three offenses previously charged after the representations submitted were considered.
Both accused were released without acquittal for the three charges.
