Firms being set up just to collect donations

Court can take action to wind up a company set up to illegally solicit donations, says minister.

KUALA LUMPUR: Domestic Trade, Cooperatives and Consumerism Minister Hamzah Zainuddin said today there is trend now to set up companies to solicit donations and not to conduct any business.

Hamzah warned that the companies which collected or solicited donations would be deregistered or wound up.

“I was made to understand that there are companies which were set up and advertised to collect money for donation.

“We also do not know who is using these donations. That is why I am advising the public not to be influenced by these groups which form companies just to trick the public and to get donations,” he said when launching the “Peti Anda Suara Kami” suggestion box by the Malaysian Companies Commission (SSM) at Menara SSM here.

He said based on Section 218 of the Companies Act 1965, the court could take action to wind up a company which was set up to illegally solicit donations and use them for purposes not related to peace, welfare, national security or public order.

He said the ministry through the SSM would tighten the regulations on donations to private companies to prevent it from being wrongly used for activities which contravened the Companies Act.

He added that the ministry was still investigating the number of companies involved in those activities and would announce the list to the public soon.

“I urge the public to be careful if they are approached by any individual or company asking for donations as these funds could be wrongly used to cause turmoil or disrupt public order.

– BERNAMA