Judge: Zakaria committed criminal offence

PETALING JAYA (June 28, 2007): The High Court (Commercial Division) has held that Port Klang assemblyman Datuk Zakaria Md Deros committed a criminal act for holding and performing the role of a company director while a bankrupt.
He was declared a bankrupt between Sept 10 and Nov 24, 1992, but continued to hold the post of director of Masmanis Sdn Bhd.
"A bankrupt who acts or continues to act as a director commits a criminal offence," said Justice Datuk Kang Hwee Gee in his oral judgment on June 21. The written submission was released yesterday.
He was presiding over a summons brought by two secretaries of Masmanis against Zakaria, the Companies Commission and three others.
Norakhmar Baharom and Lee Thai Thye had applied to the court for a declaration that Zakaria be removed as director effective Sept 10, 1992, and that all actions, dealings and transactions conducted by him as director are null and void.
They also asked the court to declare that Lee Ming Leong, Tan Pei Choo and Hicks-woode Corporate Services Sdn Bhd (named as first, second and third defendants respectively) are not secretaries of Masmanis, as they were appointed by Zakaria (the fourth defendant).
The plaintiffs wanted the Companies Commission (the fifth and final defendant) to remove from Masmanis' records all documents filed by Ming Leong, Tan, Hicks-woode and Zakaria.
The judge held that by virtue of Section 125 of the Companies Act, the post of a director adjudged a bankrupt shall be automatically vacant.
"The fourth defendant had not vacated his position despite being adjudged a bankrupt. His incompetency may have a far reaching consequence not merely at the time he acted as director but later with respect to any act done by him during his tenure which may one way or other affect the company's relationship with third parties."
Justice Kang however, dismissed the application for the removal of Ming Leong, Tan and Hicks-woode as company secretaries, by virtue of Section 127 of the Companies Act which states that despite being appointed by an incapacitated director, their appointments remain valid.
He also dismissed the application against the Companies Commission, as Section 11 (10) of the Companies Act allows for any person aggrieved by the ROC decision to apply within 30 days to the court to challenge the decision - something the plaintiffs had not done.
Zakaria was in the news last year over a litany of abuses, including building a mansion without planning permission and defaulting on assessment for over a decade.
Later, it was learnt that during the two months he was a bankrupt, Zakaria was also a serving senator.


tunku : it is best that zakaria will not be elected again as an assemblyman.DS Khir Toyo should take this action so that in future there will be no other assemblyman who does not respect the law.he broke many laws and it will tarnish umno and bn image if he is fielded again.if he is elected again i have no words to say.