Fashion Valet trial: Investment funds cannot be used to pay dividends, court told

In the ongoing trial at the Sessions Court, Fashion Valet founders Datin Vivy Sofinas Yusof and Datuk Fadzarudin Shah Anuar are charged with criminal breach of trust involving RM8 million in investment funds from Khazanah Nasional Berhad and Permodalan Nasional Berhad.

The funds, which were specifically allocated for technology development, consumer acquisition, and store expansion, were allegedly misused for unauthorized payments without board approval.

Corporate lawyer Anne Wong testified that the relevant agreements prohibited the use of investment funds for dividends or unauthorized loans, stressing the need for majority director approval for such expenditures.

The court proceedings will continue on November 20.

KUALA LUMPUR, Nov 3 — The Sessions Court hearing the case involving Fashion Valet Sdn Bhd (Fashion Valet) founders Datin Vivy Sofinas Yusof and her husband, Datuk Fadzarudin Shah Anuar, was told today that investment funds could not be used to pay dividends to any party, including the company’s shareholders.

Corporate lawyer Anne Wong Wai Yee, 49, who was involved in drafting the shareholders’ agreement between the couple and seven other companies, including Fashion Valet, on March 5, 2018, said the agreement did not contain any provision allowing investment funds to be used for such payments.

The other six companies were Proven Holding Sdn Bhd, MY E.G. Capital Sdn Bhd, Transasia E-Commerce Inc., Start Today Co. Ltd., Reussi Sdn Bhd and Pulau Tiga Ventures Sdn Bhd.

“The declaration of dividends requires the approval of a majority of the directors, including those appointed by Start Today Co. Ltd. and Pulau Tiga Ventures Sdn Bhd,” she testified during the trial of the couple, who are facing charges of criminal breach of trust involving RM8 million in investment funds from Khazanah Nasional Berhad (Khazanah) and Permodalan Nasional Berhad (PNB).

The sixth prosecution witness said the agreement also specified the permitted uses of the investment funds, namely expenditure on technology development, stores and warehouses, as well as products and brands.

“The permitted allocation of the investment funds was as follows: 30 per cent for consumer acquisition, 30 per cent for technology development, 20 per cent for store and warehouse expansion, and 20 per cent for product and brand acquisition, based on the total investment value.

“Typically, such expenditures require approval from a majority of the board of directors,” Wong said.

She said Fashion Valet was required to submit summaries of the utilisation of the investment funds to the board of directors on a quarterly and annual basis until the entire amount had been utilised.

“However, I have no knowledge of the distribution of dividends or the transfer of investment funds received by Fashion Valet, as my scope of work was limited to drafting and coordinating the contractual agreements.

“The subsequent execution of these agreements by the parties involved falls outside the scope of my professional duties,” said Wong, a partner at Karen Kaur & Anne Wong Partnership.

She further testified that Fashion Valet was prohibited from extending loans or credit to its directors, shareholders, related companies or any other parties without the approval of a majority of the board of directors.

“Furthermore, Fashion Valet is restricted from entering into any agreement or understanding with parties related to the company, its directors or shareholders, involving RM50,000 or more annually, without the approval of a majority of the directors, including those appointed by Start Today Co. Ltd. and Pulau Tiga Ventures Sdn Bhd,” she added.

Referring to a Subscription Agreement dated June 4, 2018, Wong said the document constituted a binding agreement between the relevant parties, namely Fashion Valet, Proven Holdings and PNB, concerning PNB’s investment in the company.

“Essentially, this agreement sets out the terms and conditions of PNB’s investment in Fashion Valet, whereby, in exchange for the investment, Fashion Valet would issue Redeemable Convertible Preference Shares (RCPS) to PNB,” she testified.

Vivy, 38, and Fadzarudin, 37, are charged with criminal breach of trust, allegedly committed with common intention in their capacity as directors of Fashion Valet, involving RM8 million in investment funds from Khazanah and PNB.

The charge alleges that they had authorised payments totalling RM8 million from Fashion Valet’s corporate bank account to a company known as 30 Maple without the approval of the company’s board of directors.

The alleged offence took place at the Public Bank Berhad branch in Bukit Damansara, at 36-40 Medan Setia 2, Plaza Damansara, Bukit Damansara, on Aug 21, 2018.

The charge, under Section 409 of the Penal Code, read together with Section 34 of the same Code, provides for imprisonment of between two and 20 years, whipping and a fine upon conviction.

The couple also pleaded not guilty to an alternative charge of dishonestly misappropriating, with common intention, property belonging to Fashion Valet, namely RM8 million in investment funds from Khazanah and PNB, at the same location and on the same date.

The alternative charge, under Section 403 of the Penal Code, carries a penalty of imprisonment of between six months and five years, whipping and a fine upon conviction.

The trial, before Judge Rosli Ahmad, continues on Nov 20. — Bernama

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在地庭正在进行的审讯中，Fashion Valet 创始人 Datin Vivy Sofinas Yusof 和 Datuk Fadzarudin Shah Anuar 被控刑事违反信托罪，涉及国库控股 (Khazanah Nasional Berhad) 和国家投资机构 (Permodalan Nasional Berhad) 的 800 万令吉投资基金。

据称，这些专项用于技术开发、客户获取和门店扩张的资金被挪用，用于未经董事会批准的未经授权的支付。

公司律师 Anne Wong 作证称，相关协议禁止将投资资金用于分红或未经授权的贷款，并强调此类支出需要获得多数董事的批准。

庭审将于11月20日继续进行。

吉隆坡，11月3日讯——今天，审理Fashion Valet Sdn Bhd（Fashion Valet）创始人Datin Vivy Sofinas Yusof及其丈夫Datuk Fadzarudin Shah Anuar案件的地方法庭获悉，投资资金不得用于向任何一方支付股息，包括公司股东。

49岁的企业律师黄慧仪（Anne Wong Wai Yee）参与起草了这对夫妇与包括Fashion Valet在内的其他七家公司于2018年3月5日签署的股东协议。她表示，该协议没有任何条款允许将投资资金用于此类付款。

其他六家公司分别是Proven Holding Sdn Bhd、MY EG Capital Sdn Bhd、Transasia E-Commerce Inc.、Start Today Co. Ltd.、Reussi Sdn Bhd 和 Pulau Tiga Ventures Sdn Bhd。

“宣布分红需要多数董事的批准，包括由 Start Today Co. Ltd. 和 Pulau Tiga Ventures Sdn Bhd 任命的董事，”她在对这对夫妇的审判中作证说。这对夫妇面临刑事失信指控，涉及来自 Khazanah Nasional Berhad (Khazanah) 和 Permodalan Nasional Berhad (PNB) 的 800 万令吉投资资金。

第六名控方证人表示，该协议还明确规定了投资资金的允许用途，即用于技术开发、商店和仓库以及产品和品牌方面的支出。

“根据总投资额，允许的投资资金分配如下：30% 用于消费者获取，30% 用于技术开发，20% 用于商店和仓库扩张，20% 用于产品和品牌收购。

黄先生说：“通常情况下，此类支出需要得到董事会多数成员的批准。”

她表示，Fashion Valet 需要按季度和年度向董事会提交投资资金使用情况的摘要，直到全部资金用完为止。

“然而，我对 Fashion Valet 收到的股息分配或投资资金转移一无所知，因为我的工作范围仅限于起草和协调合同协议。

“相关各方随后执行这些协议的行为超出了我的职业职责范围，” Karen Kaur & Anne Wong Partnership 的合伙人 Wong 表示。

她进一步作证说，Fashion Valet 未经董事会多数成员批准，不得向其董事、股东、关联公司或任何其他方提供贷款或信贷。

她补充说：“此外，未经多数董事（包括由 Start Today Co. Ltd. 和 Pulau Tiga Ventures Sdn Bhd 委任的董事）批准，Fashion Valet 不得与公司、其董事或股东相关的任何一方达成任何涉及每年 5 万令吉或以上的协议或谅解。”

黄先生援引2018年6月4日签署的认购协议表示，该文件构成相关各方（即Fashion Valet、Proven Holdings和PNB）之间关于PNB对该公司投资的具有约束力的协议。

她作证说：“从本质上讲，该协议规定了PNB对Fashion Valet的投资条款和条件，作为投资的交换，Fashion Valet将向PNB发行可赎回可转换优先股（RCPS）。”

38 岁的 Vivy 和 37 岁的 Fadzarudin 被控犯有刑事失信罪，据称他们作为 Fashion Valet 的董事，共同实施了该罪行，涉及来自 Khazanah 和 PNB 的 800 万令吉投资资金。

指控称，他们在未获得公司董事会批准的情况下，授权从 Fashion Valet 的公司银行账户向一家名为 30 Maple 的公司支付总计 800 万令吉。

涉嫌的犯罪行为于2018年8月21日在武吉白沙罗的大众银行有限公司分行发生，地址为36-40 Medan Setia 2, Plaza Damansara, Bukit Damansara。

根据《刑法》第 409 条和该法第 34 条的规定，该罪名可判处 2 年至 20 年有期徒刑、鞭刑和罚款。

这对夫妇还对另一项指控表示不认罪，该指控称他们在同一地点、同一日期，以共同意图不诚实地挪用了属于 Fashion Valet 的财产，即来自 Khazanah 和 PNB 的 800 万令吉投资资金。

根据《刑法》第 403 条，另一种指控的刑罚是，一经定罪，可判处六个月至五年监禁、鞭刑和罚款。

此案由罗斯利·艾哈迈德法官审理，将于11月20日继续进行。——马新社

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