A painful court experience if you don't keep sufficient accounting records...

Keeping sufficient accounting records for 7 years

Keeping sufficient accounting records for 7 years

SSM published a media statement on 16 October 2020 to caution all the directors of all companies on the importance of keeping the sufficient accounting record for a period of seven (7) years.
 
The media statement specified about a company director of Grandeast Features Sdn Bhd, Mr Chandrsekaran A/L Ramasamy was convicted of an offence under Section 167 (2) of Companies Act 1965 for fails to kept record for transaction in Financial Statement for financial year ended 2014 and 2015.

The Defendant’s Counsel appeal with the judge to consider a lighter sentence to be imposed on the accused with a reason of accused first offence.

Lastly, the judges had imposed a penalty of RM1,500.00 and if failure to pay, imprisonment for a period of two (2) months. 
 
Under this section 197(2) of Companies Act 1965, the company and every officer of the company, upon conviction, shall be imposed a penalty of imprisonment of six months or five thousand ringgit or both.
 
However, a heavier penalty to be imposed as indicated in Companies Act, 2016 under Section 245 where the company and every officer who contravene this section commit an offence and shall, on conviction, be liable to a fine not exceeding RM500,000.00 or imprisonment for a term not exceeding three years or both.  
 
For more information, click here:

- Media Statement
https://www.ssm.com.my/Lists/Press%20Release/DispForm.aspx?ID=198&Source=https%3A%2F%2Fwww%2Essm%2Ecom%2Emy%2FPages%2FPublication%2FPress%5FRelease%2FPress%2DRelease%2Easpx&ContentTypeId=0x010098952881AC48D34C9D9967E0232CDB0B

- Companies Act, 1965
https://www.ssm.com.my/acts/fscommand/act125s0167.htm

- Companies Act, 2016
https://www.ssm.com.my/Pages/Legal_Framework/Document/Act%20777%20Reprint.pdf

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