Tuesday February 5, 2013
Companies Commission probes early Country Heights Grower Scheme termination
By LIZ LEE
The commission summons managing company’s senior representatives and trustees
PETALING JAYA: The Companies Commission of Malaysia (CCM) is probing Country Heights Grower Scheme's (CHGS) proposed early termination, summoning the managing company's senior representatives and trustees to determine if they had complied with the laws, rules and regulations.
CCM, which regulates interest schemes in Malaysia, clarified that in accordance with CHGS's trust deed and related agreements, an early termination of its scheme was allowed, as long as the terms and conditions of early termination as stipulated were fully complied with.
“Taking into consideration the commercial reality, in the absence of fraud and mala fide, a business undertaking such as CHGS must be allowed to run freely and independently from regulator's constant interference,” CCM said in a press statement, adding that it was overseeing the early termination of CHGS in compliance with the trust deed and the law, lest it had to take enforcement action.
Acknowledging interest schemes as the new catalyst for wealth generators, CCM has also finalised a new legal framework for such schemes.
“Going forward, as part of its law reform programme, CCM has completed the review process of the interest scheme legal framework towards introducing a more dynamic, modern and responsive regulatory framework,” it said.
Under the proposed new legal framework, CCM said it could stimulate the industry by opening up business opportunities to small and medium-scale enterprises in creating new business deals and offering new products to the public via interest schemes running within the confinement of the law.
The new legal framework will also strengthen the governance framework through specific duties and responsibilities of management companies and trustees, enhance the rights of interest holders, and address issues relating to the requirement for periodical reporting and appointment of auditors for the approved scheme.
CCM will subsequently be in a better position to protect investor interest, including by way of injunctions and restitution. “It is our intention that all registered interest schemes are workable and viable to generate the promised returns to its respective investors.”
Nevertheless, CCM advised the public to understand the risks associated with the investment and their rights as investors.
CHGS founder Tan Sri Lee Kim Yew had recently proposed the termination of the scheme, setting off alarm among some investors about their investments.
Lee clarified that he had no hidden agenda to profit from the termination.