Speech by Parliamentary Opposition Leader, DAP Secretary-General and MP for Petaling, Lim Kit Siang, at the inauguration of the Pasir Badamar Branch, Teluk Anson, at Jalan Woo Eik Hong, Teluk Anson, on Thursday 25th June 1981at 6 p.m.
Pahang MCA state holdings, PANWA DEVELOPMENT BHD, has committed an offence in issuing share application forms with accompanying prospectus as required by law
The latest gimmick of the MCA is to create and manipulate the ‘holdings share’ craze in the country, as an opium to dull and numb the people’s senses and sensibilities about their basic political, economic, educational, social and cultural rights.
In the last one week, I had been pointing out how the MCA in the various states had used improper, and even illegal methods to try to get the people to subscribe to the MCA state holdings companies.
I have now uncovered yet another irregularity by another MCA state holding company, this time, the Pahang MCA holding company, namely Panwa Development Bhd., which had issued application forms inviting the people to buy shares. Panwa Development Bhd., according to the latest Registry of Company records, had not yet registered a prospectus approved by the Registrar of Companies, and in issuing shares application forms without the accompanying prospectus, Panwa Development Bhd. had committed an offence under Clause 37(1). of the Companies Act 1965.
Clause 37(1) of the Companies Act states that “A person shall not issue, circulate or distribute any form of application for shares in or debentures of a corporation unless the form is issued, circulated or distributed together with a prospectus a copy of which has been registered by the Company.”
The penalty of committing the offence under Clause 37(1) is imprisonment for two years or a fine of five thousand dollars.
According to the Registry of Company records, Panwa Development Bhd. was incorporated on 14th January 1981. The directors are:
1. Loo Swee Mok (I/C 2208948) of C-138 Kg. Baru, Gambang;
2. Yong Pung Yoong (I/C 0913794) of 60 Main Road, Kuala Lipis;
3. Che Kwang Tar (I/C 0250831) of 24 Jalan Mason, Raub;
4. Yow Sze Chee (I/C 0924817) of B 55 Jalan Aman, Temerloh;
5. Tan Tiow Heng (I/C 2497490) of 131 Jalan Pontian, Mentakab;
6. Soh Yok Leong (I/C 2722526) of 15 Jalan Melor, Mentakab;
7. Poo Ywe Choy (I/C 7655892) of 292 Perting Village, Bentong;
8. Ho Chock Keong (I/C 3574524) of 39 Jalan Besar, Jerantut;
9. Foo Boon Liang (I/C 3495546) of 156 Jalan Telok Sisek, Kuantan.
The MCA, as a component political party, is clearly most irresponsible in being in open breach of the laws of the land for the purposes of making money.
The MCA leadership, both national and state, should not go into hiding, but should clearly and responsibly explain to the public as to what they are up to, why they break the very laws which, are meant to protect the public from being cheated by unscrupulous and dishonest people.
In this connection, the MCA both at national and state level, should pay attention to Clause 363 of the companies Act 1965 which make it an offence for anyone to go round ‘hawking’ shares, punishable with six months’ imprisonment or $1,000 fine or both, and in the case of a second or subsequent offence, 12 months’ jail or $2,500 fine or both.
The MCA leaders should set an example of being law-abiding and honest in all business dealings.