What should investors do?
The above story is an example of breach of fiduciary duties by directors and criminal breach of trust (CBT). Minority shareholders who are aware of such transactions should immediately take up this matter. The next time you look at a PLC’s financial statements, be wary of “advances” made to any “joint-venture company” that is written off within a financial year.

Investors are advised to learn how to read financial statements closely and to voice their dissatisfactions if they suspect any wrongdoing in the company. Exercise your right to seek information about such advances and joint-venture agreements. Voice your opinions at the AGMs (Annual General Meetings) and demand full explanations for the accounting transactions.

If you suspect there is any wrongdoing by the company, do not hesitate to lodge your complaints with the relevant authorities — Securities Commission (Complaints Unit — Tel: 03-6204 8999 or e-mail: aduan@seccom.com.my), Suruhanjaya Syarikat Malaysia (Tel: 03-4043 3366 or e-mail tanya@ssm.gov.my) or Polis Diraja Malaysia (Bahagian Siasatan Jenayah Perdagangan — Tel: 03-2693 0245).

Remember – while the SC has a strong surveillance team, and has taken and will continue to take action against directors found to contravene securities laws, you, as an investor, must play your part to protect your own investment. Contrary to what is often said, what you do not know can actually hurt you. Investors, exercise your rights! Because this is YOUR investment we are talking about!