Two company directors jailed 20 days for defying Mareva injunction
Judicial Commissioner Yusrin Faidz Yusoff ruled that the directors, Syed Mahadzir Fadaak Syed Jamil Fadaak and his wife Erna Elliyana Rosli, had deliberately defied court orders issued on Sept 5 and Nov 22 last year.
The court granted a two-month stay of execution to allow the couple time to fully comply with the Mareva order. Yusrin stated that a fine alone would not suffice given the severity of their non-compliance.
'The great concealment of the material information, the failure to comply over an extended period and the strategic nature of the non-disclosure demand a stern response,' he said.
In addition to the jail term, the court imposed a RM10,000 fine on each director, payable within seven days, failing which they would serve an additional seven days in prison.
The contempt charges arose from their failure to adhere to the Mareva injunction filed by 64 investors who accused Alpha Capital of failing to pay monthly dividends totalling RM19,831,440.50.
A Mareva injunction is a temporary court order preventing defendants from disposing of assets until a case is resolved.
During proceedings, the directors apologised, claiming they did not intend to disrespect the court.
'We did not intend to be in contempt of court, we do not understand what was being requested (in the Mareva injunction),' said Syed Mahadzir Fadaak. He added that their bank accounts were frozen, delaying a full audit report.
Lawyers Sachpreetraj Singh and Simran Kaur represented the investors, while Ganesh Magenthiran acted for the directors. - Bernama
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