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Duty of Care, Skill, and Diligence: Directors must perform their roles with due care, skill, and diligence. If they fail in these duties, especially by causing significant financial loss, shareholders or stakeholders might be able to take legal action.

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Insolvent Trading: If the company had been trading while insolvent, this could indicate that directors breached their duty under Section 539 of the Companies Act. It could lead to personal liability if they allowed or continued trading despite the financial distress.

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Penal Code: Criminal Breach of Trust (CBT)
- Section 405: If directors or officers are found to have dishonestly misappropriated, converted, or used the company’s assets, they may be charged with criminal breach of trust under Section 405 of the Penal Code.

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Section 409: If proven that someone in a managerial position was involved in criminal breach of trust, this section imposes stricter penalties for CBT committed by a public servant or agent, which includes company directors or agents dealing with property on behalf of another.

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Securities Commission Malaysia (SC) and Malaysian Anti-Corruption Commission (MACC)
- Corporate Misconduct: If any form of fraud, insider trading, or unethical practices were involved, Khazanah’s directors could be subject to SC investigations. Misrepresentation of a company's financial health, hiding key information, or deliberately causing losses could all be grounds for legal action.

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Public Governance, Accountability, and Transparency Laws
- Government-Linked Investment Company (GLIC) and Sovereign Fund Obligations: GLICs like Khazanah have mandates to act transparently and responsibly. Failure to fulfill these can lead to public scrutiny and calls for reform. Although no specific law targets poor governance in GLICs, public authorities, including the Auditor General and the Public Accounts Committee (PAC), can initiate inquiries and make recommendations for accountability.

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Civil Lawsuits for Negligence or Breach of Duty
- If shareholders or other stakeholders suffer due to the board’s negligent management, they may be able to pursue a civil lawsuit, claiming that directors breached their duties under common law principles. Stakeholders could seek compensation or even injunctive relief to prevent similar future mismanagement.

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Legal Recourse and Investigation
To ensure accountability:
- Auditor General and PAC Inquiry: These entities can review whether Khazanah’s board acted in compliance with its mandate and whether there was any misuse of public funds.

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Independent Forensic Audit: An independent review could be requested to identify if there was genuine oversight failure, negligence, or any other malfeasance in the handling of this investment.

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For transparency, Khazanah’s board could face stronger oversight, reforms, or even legal action if there’s evidence of willful or gross mismanagement.

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Timing and Justification of Divestment: Khazanah stated that it divested from FashionValet due to the investment reaching the end of its holding period. However, a large RM43.9 million loss suggests that the investment’s performance was problematic well before reaching maturity. The "end of holding period" explanation may seem like a deflection from discussing specific issues related to performance monitoring and strategic decision-making during the investment term.

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Urgent Need for Funds: The announcement mentions that FashionValet was in urgent need of funds to continue operating, indicating potential financial distress. If this distress was recent, then Khazanah’s decision could arguably be a necessary but unfortunate exit. However, if this distress was long-standing, it raises questions about whether Khazanah properly monitored the investment and intervened promptly to either guide FashionValet or exit earlier.

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Lack of Transparency Regarding Investment Failures: Sovereign wealth funds like Khazanah operate using public funds, so transparency is crucial. Khazanah’s statement does not provide a detailed account of why the investment failed or what factors led to FashionValet’s financial troubles. The lack of an in-depth explanation could reflect poor accountability to stakeholders.

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Strategic Responsibility of Management: The responsibility lies with Khazanah’s board and management to ensure that their investments align with their mandate for value generation and strategic growth. With a substantial loss on record, it would be reasonable to expect some acknowledgment of oversight issues, as well as preventive measures to avoid similar occurrences in the future. Their emphasis on the “end of holding period” without mention of possible missteps in investment assessment or execution may come across as sidestepping accountability.

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Reliance on Public Funds and Accountability: Khazanah’s portfolio is financed by taxpayer money, which emphasizes its duty to operate with fiscal responsibility and transparency. A sizable loss without clear justification might suggest that there were gaps in due diligence, market insight, or operational oversight on the board’s part.

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Public Sector vs. Private Sector Accountability: Unlike the private sector, where market forces discipline failure through loss of profits or jobs, public institutions like Khazanah must demonstrate higher accountability standards to justify their use of taxpayer funds. Continuing to reward the top brass in the face of missteps establishes a dangerous precedent and suggests that poor performance lacks consequences.

Posted by Income > 3 weeks ago | Report Abuse

U think a bang adik care ?

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Anti-Corruption: If corruption, abuse of position, or kickbacks were involved, the MACC Act 2009 would apply. Section 17A of the MACC Act makes commercial organizations liable for corruption unless they can demonstrate adequate procedures to prevent it.

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Trustee Act 1949 and Common Law Fiduciary Duties
- Although Khazanah is a sovereign wealth fund rather than a traditional trust, its directors and officers have fiduciary responsibilities similar to those of trustees. If they failed in this duty, there might be grounds to allege a breach of trust under common law, especially if it’s shown they acted recklessly or irresponsibly with public funds.

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Systematic path to reclaim misused public funds, sending a strong message against corruption while safeguarding Malaysia’s national investment funds.

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The heads of Khazanah and Permodalan Nasional Berhad (PNB) bear a responsibility to report the Fashion Valet (FV) scam and, if failing to do so, might be considered as culpable as former Prime Minister in the 1MDB scandal involving JLow

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Integrity, Accountability and Ethical Standards: Public trust in Khazanah and PNB is critical. Like in the 1MDB scandal, where Naj’s failure to address and prevent Low’s activities directly affected Malaysia's financial integrity, leaders of major institutions are expected to uphold ethical standards and act on misconduct. Not reporting any known misconduct, especially large-scale fraud, could imply that they are prioritizing reputation over accountability, which could lead to suspicion and erode trust.

Posted by chinaman > 3 weeks ago | Report Abuse

as long as GLC or GLIC exist, 1MDB will recurrently. pls just close all GLC. gomen has no biz in biz. so why blame Ah Jir Kor for 1MDB, blame who start this GLC, or investment fund using tax payee money??? why Mana Ni still allow same abuse to happen?

Posted by chinaman > 3 weeks ago | Report Abuse

all this GLC copycat china centralist communist idea. cakap tak serupa bikin,

Posted by EngineeringProfit > 3 weeks ago | Report Abuse

While Sarawak boleh - high income partner of Msia.....hehe

Peninsular continues to be plagued by shameless nama busuk feedlot cow, 1mdb, Lowyat 2, fashion valet......

Posted by chinaman > 3 weeks ago | Report Abuse

Sarawak also set up many GLC lei like petros, MASwing, own bank by takeover affin, own this own that

Posted by chinaman > 3 weeks ago | Report Abuse

that day, your boss envision own state car using hydrogen lei like potong

Posted by EngineeringProfit > 3 weeks ago | Report Abuse

We are different - more GLC, more foriegn investors, more prosperous here.....hehe

While Sarawak has made strides in offering free university education, Peninsular Malaysia still depends heavily on the PTPTN (Perbadanan Tabung Pendidikan Tinggi Nasional) loan system. This loan system has often led to financial strain on young graduates, many of whom struggle with repayment due to job market constraints and wage stagnation.

Sarawak's ability to offer free education could be partly due to its resource-rich status, especially in oil and gas, which has contributed to its higher income base. This raises questions about federal resource allocation, the impact of regional autonomy, and the effectiveness of wealth distribution policies. Sarawak and Sabah have, in some instances, pushed for greater autonomy over their finances and resources, arguing that this could better serve the needs of their populations.

On the other hand, Peninsular Malaysia's issues with scandals, such as 1MDB, the feedlot scandal, and corruption allegations, have cast a shadow on the federal government's management of public funds. These issues not only affect public trust but also hinder the government's ability to fund social initiatives, such as debt-free education.

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KUCHING: Petros, the Sarawak government-owned oil and gas company, is allocating about RM40 billion over the next five years for its capital expenditure, according to its chairman, Hamid Bugo. capital come from??

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n a statement yesterday, the DAP Youth chief claimed the total shares of the company owned by bodies linked to the Sarawak government amounted to about 30%.

He said the court’s decision to allow a petition by the six financial institutions to wind up Serba Dinamik Holdings and its three subsidiaries – Serba Dinamik International Ltd (SDIL), Serba Dinamik Sdn Bhd, and Serba Dinamik Group Bhd – was “concerning” as the Sarawak government held significant shares in the company.

Yii said he raised the issue in May 2022, but that deputy premier Douglas Uggah Embas merely told the state legislative assembly that Serba Dinamik was “only going through a series of interim or short-term setbacks”.

He also asked about the government’s plan to recoup such losses and ensure zero repeat of such scandals. “Good governance is fundamental to ensure that the future of Sarawak and Sarawakians is protected,” said Yii.

Posted by EngineeringProfit > 3 weeks ago | Report Abuse

FashionValet acquired 30 Maple, the company behind the dUCk brand, from Vivy Yusof. This acquisition took place in December 2018, following FashionValet's Series C funding round earlier that year. The valuation of this deal is reported to be around RM100 million

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Vivy Maple's owner could exploit PNB and Khazanah through a combination of strategic misrepresentation, leveraging institutional trust, and potential misallocation of funds.

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Reformbasi

Posted by EngineeringProfit > 3 weeks ago | Report Abuse

While internal audits play a crucial role in the governance of GLCs like Khazanah and PNB, they should be complemented by a multi-faceted approach that includes external audits, robust risk management practices, enhanced corporate governance, and technological solutions. This holistic strategy can provide a stronger defense against losses from suspicious deals and improve overall accountability in investment decisions.

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Anti-Corruption Legislation: Laws like Malaysia's Anti-Corruption Act (MACC Act 2009) impose stringent obligations on leaders to prevent and address corrupt practices. Under Section 17A, for instance, companies are liable if employees or associates are involved in bribery unless the company has adequate procedures to prevent such acts. Inaction by leadership, therefore, can expose a company to severe penalties if fraudulent or corrupt activities are found to be occurring internally.

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With over a dozen of passport retained, bank accounts frozen - We wishes to confirm that it has initiated an investigation into allegations of potential misappropriation of public funds. This decision underscores our unwavering commitment to upholding integrity, transparency, and accountability in public service.

We understand the seriousness of these allegations and their implications for public trust. Therefore, we assure the public that this investigation will be conducted thoroughly, impartially, and in accordance with the law. Our goal is to ascertain the facts surrounding these allegations and determine if any misconduct has occurred.

We encourage anyone with relevant information to come forward and assist in this investigation. Whistleblower protections are in place to ensure confidentiality and safety for those who contribute information.

As this is an ongoing investigation, we cannot disclose further details at this time. We ask for the public's patience and understanding as we carry out our responsibilities. We are committed to providing updates as appropriate while ensuring that our investigative processes remain unimpeded.

The ACC remains dedicated to fighting corruption and safeguarding the interests of the citizens we serve. Thank you for your continued support and trust in our efforts.

Posted by chinaman > 3 weeks ago | Report Abuse

1) conflict of interest when gomen also involved in biz. 2) waste tax payee money and time to audit all GLC 3) use tax payee $$ to bail out each time GLC failed 4) usd300million legal cost already spend so far to recover 1MDB assets =damage control

Posted by chinaman > 3 weeks ago | Report Abuse

5) no wonder gomen debts keep rising, need more SST whatever tax to cover big hole-reach rm1.4trillion already 6) just sell out all GLC/ GLIC settle all debts

Posted by chinaman > 3 weeks ago | Report Abuse

7) with lower debts, myr will strengthen thus even if subsidy abolished citizens feel lesser pain with stronger myr.

Posted by EngineeringProfit > 3 weeks ago | Report Abuse

No worries.....Next gomen will learn to confiscate dozens of culprits' assets to return to money to fund the people's subsidies and waive PTPTN......

Posted by chinaman > 30 minutes ago | Report Abuse

1) conflict of interest when gomen also involved in biz. 2) waste tax payee money and time to audit all GLC 3) use tax payee $$ to bail out each time GLC failed

Posted by EngineeringProfit > 3 weeks ago | Report Abuse

Companies Act 2016
- Breach of Fiduciary Duty: Directors and officers of Khazanah, as in any company, have fiduciary duties to act in the best interests of the company. Under the Companies Act 2016, directors have a duty to act honestly, in good faith, and for the benefit of the company as a whole. Failing to exercise these duties responsibly can expose directors to legal claims. Sections 213-218 of the Companies Act address these duties

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According to a reply by Finance Minister Tengku Dato’ Sri Zafrul Tengku Abdul Aziz to Dewan Rakyat, a whopping RM28 billion has been injected into MAS by its owner Khazanah Nasional. That’s already substantial but what about the years before Khazanah came in?

Clearly Khazanah has done its part to help sustain the company and MAS management had many chances for a turnaround alongside several bailouts. Most recently,business news portal The Edge Weekly reported financial aid amounting to RM2.1 billion was being sought by MAS from its owners. It was only in July thatthe Edge Markets reported a US$300 million (RM1.28 billion) worth of new funding - likely a government grant - was secured by MAS to support it through the pandemic.

Posted by EngineeringProfit > 3 weeks ago | Report Abuse

Yes, also LCS, NAFAS Baja........and count on

Posted by EngineeringProfit > 3 weeks ago | Report Abuse

MACC is toothless to recover stolen money while LHDN sleeping on job...........That's why the middle class has to be squeezed

Posted by EngineeringProfit > 3 weeks ago | Report Abuse

If all the culprits are made to pay back, certainly all Rakyat will continue to be supported by the government during this post-pandemic challenging time

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Here are five key points raising concerns around the Khazanah Nasional and Permodalan Nasional Berhad (PNB) investments in FashionValet, especially as they pivoted operations and shut down their core platform:

1. Suspicious Abrupt Shift in Business Model: FashionValet received substantial investment from government-linked firms, Khazanah and PNB, only to later pivot its business focus entirely to its in-house brands, dUCk and LILIT. The closure of FashionValet’s online platform was abrupt, especially considering the capital injected to expand their retail presence and enhance operational capacity just before the pivot. Critics question if these funds were used as planned or redirected with little transparency, sparking concerns about misuse of investment intent.

2. CBT Redirection of Resources: Funds from Khazanah and PNB were intended to support FashionValet as an e-commerce platform connecting multiple brands. Instead, these resources were reallocated to boost only dUCk and LILIT, effectively sidelining the original mission. This redirection without clear prior disclosure appears to have strained trust with investors, raising suspicion about whether the initial investment terms were met in spirit.

3. Potential Accounting Fraud - Profit Diversions and Dividend Payouts: Speculative reports indicate that FashionValet might have paid out dividends (around RM4.2 million in 2018) shortly before it pivoted to focus solely on its own brands, rather than reinvesting in the e-commerce platform or expanding its core business. If accurate, these actions could indicate strategic cash-outs by major stakeholders before shifting the business model, which adds to the perception of possible fund mismanagement.

4. Unaccountable Unusual Write-offs: FashionValet's 2017 financial records included a significant RM2.284 million write-off for web development expenses. The lack of confirmation from associated parties about this write-off has led some to question if this might mask other financial practices. Given the relatively low cost of Magento (the platform they were using), this high expense for a web template raises eyebrows.

5. Insensible High-Cost Capital- losing Physical Stores Despite Online Model: While positioned as an online marketplace, FashionValet invested heavily in physical store expansions at premium locations, incurring significant overhead costs. This move into offline retail spaces was unexpected and appeared misaligned with the original value proposition of an e-commerce-focused model, raising questions on the necessity and timing of such expenses in relation to the platform's closure.

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For no.1 : The abrupt shift in FashionValet’s business model after substantial investments from government-linked corporations, such as Khazanah and Permodalan Nasional Berhad (PNB), raises several legal concerns under Malaysian law, particularly regarding the proper use of investment funds, transparency, and fiduciary responsibilities. Below are specific Malaysian laws and regulations potentially implicated:

1. Companies Act 2016 (CA 2016):
- Section 132: This section emphasizes the duty of directors to act in the best interests of the company, to avoid conflicts of interest, and to exercise reasonable care in the company’s management. Any drastic business pivot—like shifting from FashionValet’s platform to in-house brands (dUCk and LILIT)—must be justified as beneficial for the company’s stakeholders, including its investors. A lack of transparency or failure to inform and obtain consent from significant shareholders could constitute a breach of directors' fiduciary duty.
- Section 289: Misrepresentation or providing false or misleading information about a company’s affairs, including financial projections or intended business direction, is prohibited. If the company misled investors about the intended use of funds, it could be liable for misrepresentation, which may lead to civil penalties or shareholder actions.

2. Capital Markets and Services Act 2007 (CMSA 2007):
- Section 317A: This provision requires disclosures to be true and not misleading, especially when involving government-linked investors. If FashionValet presented one business plan to attract capital but subsequently used the funds differently without proper disclosure or approval, this could violate requirements for transparency and fair dealing.
- Section 320: Any abrupt pivot in the business model that was not disclosed to investors can be seen as a “false or misleading statement” regarding material information if the funds were allocated with expectations based on FashionValet’s original business plan.

3. Trustees Act 1949 (Revised 1978):
- Government-linked investors, like Khazanah and PNB, act as trustees of public funds. They are expected to ensure that investments align with public interests and adhere to prudential standards. A shift in business strategy without consultation or a clear justification might indicate a misuse of funds entrusted to these entities, potentially constituting a breach of the trustees' fiduciary duty under the Trustees Act.

4. Financial Reporting Standards (FRS):
- All companies in Malaysia, particularly those receiving public funds or significant investment from government-linked corporations, are required to maintain transparent and accurate financial records under the Malaysian FRS. An abrupt business model change without proper disclosure in financial reports could be considered a failure to provide a true and fair view of the company’s financial position and operations.

5. Anti-Corruption Laws:
- If any influence or arrangement unduly favored FashionValet to secure funding under the pretense of expansion but ultimately used these funds to pivot towards in-house brands, this could potentially fall under the purview of Malaysia’s Malaysian Anti-Corruption Commission Act 2009 (MACC Act 2009). Sections of the Act criminalize the misuse of funds, abuse of power, or any acts of corruption involving public monies.

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For no.2 : To examine potential Malaysian laws that might have been violated in a case like this, especially in a situation where funds intended for a specific purpose were allegedly redirected, we can focus on several legal frameworks. The key issues here are potential criminal breach of trust (CBT), the misrepresentation of investment objectives, and the obligations of fiduciary duties to stakeholders.

1. Criminal Breach of Trust (CBT)
In Malaysia, CBT is governed by Section 405 of the Penal Code. This section outlines that an offense occurs when an individual entrusted with property or authority over it misappropriates it or uses it in violation of any legal direction. Redirecting funds from Khazanah Nasional and Permodalan Nasional Berhad (PNB)—two key investment entities in Malaysia—into different areas than initially intended, such as focusing only on dUCk and LILIT, could be interpreted as misappropriation if it contradicts the original agreements.

- Example: If the funds were specifically earmarked for expanding an e-commerce platform connecting multiple brands, but were instead used predominantly to develop only two brands, this could be seen as a violation of the terms under which the funds were entrusted.
- Rationale: CBT laws are intended to safeguard against any breach of trust that could harm stakeholders financially or reputationally.

2. Breach of Fiduciary Duty
Fiduciary duty obliges company directors and officers to act in the best interests of their shareholders or investors. Under the Companies Act 2016, directors must carry out their responsibilities honestly, in good faith, and in a manner they believe is in the best interest of the company. If the redirection of resources prioritized specific brands over the broader e-commerce mission, this could signal a breach of fiduciary duty.

- Example: Directors or executives may be found in breach if they failed to disclose the reallocation of resources to investors or did not act transparently about how funds would be distributed.
- Rationale: Fiduciary duties are meant to protect investors and ensure directors do not exploit their positions for gain inconsistent with the company’s interests. If the original objective was sidelined without proper disclosure or shareholder approval, the directors could be liable for this breach.

3. Securities Laws on Disclosure and Misrepresentation
The Capital Markets and Services Act 2007 (CMSA) includes provisions against misrepresentation, where any disclosure to investors must be accurate and complete. If FashionValet's leaders assured Khazanah and PNB that the funds would be used specifically to build a multi-brand e-commerce platform but redirected them without transparent updates, they could face allegations of misrepresentation.

- Example: If FashionValet provided investors with an investment prospectus or statement that promised expansion across multiple brands and later deviated from this without notifying investors, they may be liable for misrepresentation.
- Rationale: Securities laws are designed to foster transparency and protect investors. Any redirection of resources without updating investment stakeholders can be seen as a breach of these disclosure requirements, potentially leading to penalties or sanctions.

4. Corporate Governance Violations
Malaysia’s Code on Corporate Governance emphasizes transparency and accountability. This code encourages companies to ensure that their strategies align with communicated objectives. Reallocating funds could signal governance issues if it departs from the corporate strategies communicated to Khazanah, PNB, or other shareholders.

- Example: The board might face scrutiny if it’s shown that strategic decisions were made to benefit specific brands (dUCk and LILIT) without approval from, or clear communication with, stakeholders.
- Rationale: Strong governance practices are central to protecting investor interests and ensuring that company leadership is held accountable for major decisions. Unilateral decisions that prioritize certain projects can harm trust and are often viewed as governance breaches.

5. Misuse of Public Resources (if applicable)
If Khazanah and PNB funds are sourced from public money, any redirection that does not align with stated objectives could be seen as a misuse of public resources. Public fund misuse is a serious offense in Malaysia and could lead to investigations by government oversight bodies.

- Example: Suppose public resources intended to support a diverse range of brands were instead funneled disproportionately into only two brands. In that case, the company could face questions on its commitment to the intended goals of the funding.
- Rationale: Public resources are held to high standards of accountability. The goal is to ensure that such funds benefit the intended stakeholders rather than selectively boosting a few brands or individuals.

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For no.3 : In Malaysia, if there are allegations of accounting fraud, profit diversions, or mismanaged dividend payouts, several legal frameworks and regulatory bodies may come into play, potentially leading to investigations and sanctions if violations are found. Here are the relevant laws and regulations that could be applicable to the scenario described:

1. Companies Act 2016 (CA 2016)
- Section 213: Directors’ Duties — Directors are legally required to act in the best interest of the company, with due diligence, skill, and care. If FashionValet directors approved dividends while being aware that these payouts might harm the company's financial stability or reinvestment needs, they could be held liable for breaching their fiduciary duties.
- Section 248: Duty to Keep Proper Accounting Records — If accounting irregularities are suspected, failure to maintain transparent, accurate records is a violation. This can apply if accounting was manipulated to enable profit diversions or mask financial issues.
- Section 131 and 132: Solvency Requirements for Dividend Declaration — Dividends can only be declared if the company is solvent. If FashionValet paid dividends without meeting solvency criteria, this could constitute a breach of CA 2016, with directors potentially facing personal liability.

2. Financial Reporting Standards (FRS)
- Under Malaysian Financial Reporting Standards, companies are required to present accurate financial statements that reflect their true economic position. If there were omissions or inaccuracies related to profit diversion or dividend payouts, this could breach FRS. Such misconduct can lead to penalties for misleading financial disclosures.

3. Malaysian Code on Corporate Governance (MCCG)
- The MCCG establishes ethical guidelines and good corporate governance principles. If there were instances of cash-outs by stakeholders at the expense of the company’s long-term strategy or stability, it would go against MCCG principles. Though the MCCG itself doesn’t have legal penalties, breaches could negatively affect the company’s reputation and result in regulatory scrutiny.

4. Securities Industry Laws:
- If FashionValet was publicly listed or involved in the capital market, violations of these laws could occur:
- Capital Markets and Services Act 2007 (CMSA): Provisions under the CMSA address fraudulent financial statements and the manipulation of a company’s finances for improper gain.
- Securities Commission Malaysia (SC): The SC has oversight over public offerings and could investigate if profit diversion or dividend mismanagement impacted shareholders.

5. Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (AMLATFA)
- If any profit diversions were hidden or involved any financial maneuvering to disguise true financial activities, AMLATFA could be invoked. This act applies to money laundering activities and requires accurate reporting of financial transactions.

6. Income Tax Act 1967 (ITA)
- If funds were diverted in a manner that affects corporate tax liability, it could be a breach of the Income Tax Act. Companies are legally required to report profits accurately, and any intentional diversion that reduces tax liabilities might lead to penalties.

Possible Consequences and Enforcement Actions:
- Fines and Penalties: Breaches of CA 2016 or CMSA provisions could result in heavy fines.
- Director Disqualification: If directors are found to have violated fiduciary duties or other provisions, they may be disqualified from serving as directors in the future.
- Civil and Criminal Charges: Severe cases involving fraud or deliberate misrepresentation may lead to civil lawsuits or criminal charges against individuals involved.
- Investigations by Relevant Authorities: The Companies Commission of Malaysia (SSM), SC, and Malaysian Inland Revenue Board (IRB) may initiate probes into the matter, especially if shareholders or other stakeholders lodge complaints.

If the allegations of profit diversion and dividend payouts are substantiated, these legal provisions may be used to hold FashionValet’s directors or executives accountable.

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For no.4 : If the RM2.284 million write-off for web development costs was indeed unusual and unsupported, potential violations under Malaysian law include:

False reporting under the Companies Act 2016 (up to RM3 million fine and 10 years imprisonment),
Incorrect tax submission under the Income Tax Act 1967 (penalties of 100-200% of tax due and imprisonment up to three years),
Potential corruption liability if funds were misused under MACC Act 2009 (10 times bribe amount fine and RM1 million minimum fine).