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Deals that cause company to loss

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asked on Sep 5, 2017 at 03:43
by   Jack007
I am a shareholder owning 10% of a company. Recently, I just found that the person in charge of the company (who is also the director of the company) is making the loss deal for the company. The arrangement that is certainly causing the loss of the company from several 10K to over 100K, and result in beneficial to another company which is relate to the person in charge personal & family interest.

Here I want to ask, is it a crime to make a deal / arrangement that is beneficial to another company and causing loss on this company? I am asking this is to know is there any law on it? So, that I can better prepare for my next move.

Thank you.
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answered on Sep 5, 2017 at 19:38
by   vkpc
... result in benefits to another company which is relate to the person in charge personal & family interest.  Is it a crime to make a deal / arrangement that is beneficial to another company and causing loss on this company?

Yes, it is a crime a that is called Corruption.
You can report corruption crimes to MACC.
Website : http://www.sprm.gov.my
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answered on Sep 6, 2017 at 15:41
by   Tanavaroot
edited Sep 6, 2017 at 15:49
by   Tanavaroot
@Jack007

For your case it is Petty Corruption. But unless you have proof, then you can create a case at the Commercial Crime Center nearest your city. It is very difficult to prove for this type of business dealings. Be aware you are only a 10% shareholder. Having a 10% share in a 1M co is very different from having a 10% in a 100M co.

I do find it strange that the person in charge would leak such information to you unless you have a substantial say in the company. Do take into account that there could be a hidden agenda to take over your shares. That is some form of psychological warfare. Be aware that you could be counter-sued in a personal capacity.

 Is it a crime to make a deal / arrangement that is beneficial to another company and causing loss on this company? 

A1:-  YES... Corruption is the abuse of entrusted power for private gain.

A2:-  NO.. if it is commercial dealing with proper documentations. As far as the Tax Dept is concerned, the profits at the end will be taxed from this company or the other. The normal pleadings will be.. "lose on this project to gain a bigger project". Is it a crime then? It depends on how to window dress your accounts.

What are the thoughts on the other 90% shareholders/directors?
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