KUALA LUMPUR: FGP Ventures Sdn Bhd, a private company limited by shares, has been fined RM25,000 by the Sessions Court for the wrongful offering of Islamic Redeemable Preference Shares (iRPS).

The Companies Commission of Malaysia (SSM) said the conviction was made in accordance with Section 90(4) of the Companies Act 2016 related to the allotment of iRPS preference shares without the company's constitution.

Section 90(4) of the Companies Act 2016 stipulates that it is an offense for any private company limited by shares to make an allotment of preference shares without having the company's constitution, and upon conviction, a fine not exceeding RM500,000 may be imposed under subsection (5) of the same Act.

Previously, on Nov 28, 2023, FGP Ventures Sdn Bhd and its director, Khemlani Satesh, were charged with four offenses under Section 43(1) and Section 90(4) of the Companies Act 2016 regarding the offer of iRPS shares to the public.

"FGP Ventures and Khemlani offered shares to the public by depositing money with the company for a specified period with guaranteed interest according to agreed terms.

"The parties also made the allotment of preference shares without provisions in the company's constitution at that time," SSM said.

It said the company and its director were fined a total of RM325,000 for the offenses, and subsequently both defendants were granted a discharge not amounting to acquittal for the charges.

SSM warned the public that a private company is prohibited from offering company shares to the public and making such share allotments without provisions in the company's constitution. - Bernama