Consequences of Forged Documents
Case Background
- A director of Wagyu House Malaysia Sdn Bhd
- Was alleged to have forged statutory company documents
- The documents involved:
- A director's resignation
- A share transfer
Findings by SSM
- According to SSM
- The director allegedly instructed the company secretary to prepare and submit the documents
- Which were suspected to contain false information
Relevant Law
- The director was charged under Section 591(2)(a) of the Companies Act 2016
- For forging or submitting false statutory documents
Possible Penalties
- Upon conviction the director may face:
- Up to 10 years' imprisonment
- A fine of up to RM3,000,000
- Or both
Case Status
- The accused pleaded not guilty
- The court granted bail of RM20,000
- The prosecution was also directed
- To file its written submissions by 28 October
Key Lessons from the Case
1. Statutory Documents Must Never Be Forged
- Information relating to directors, shareholdings, and other statutory matters
- Must always be truthful and accurate
2. Directors Cannot Instruct Others to Break the Law
- Even if the company secretary submits the documents
- A director who authorises or instructs the forgery
- May still be held legally responsible
3. Company Secretaries Must Verify All Information
- Before submitting statutory documents
- They should ensure that all information is accurate, complete, and legally compliant
Summary
- Forging statutory company documents is a serious criminal offence
- Directors and other responsible parties may be held personally liable
- Honest disclosure and proper compliance are fundamental to good corporate governance