Nine directors of a research centre founded by Falun Gong practitioners were today charged by the Companies Commission of Malaysia (CCM) with six violations of the Companies Act 1965.

The charges include failure to print the name and company number of the Falun Dafa Research Centre on its official receipts in Roman letters and failure to convene an annual general meeting (AGM) in the state where the centre was registered.

These are violations of section 121(1)(b) and 145A of the Act respectively.

It was learnt that the Falun Dafa company had paid a compound fine of RM2,050 for seven similar offences, but disagreed with the directors being penalised for "oversights" in the administration of the company.

Pleading not guilty to all charges in the Kuala Lumpur magistrate's court, their case was fixed for mention on July 1 by magistrate Azniza Mohd Ali.

The Falun Dafa officers were also charged under section 165(5), which pertain to their alleged failure to submit the company's annual returns for 2004 within one month of their AGM held in Oct 30, 2004.

Another charge under section 170(1) was for failing to submit audited financial statements within 14 days of the AGM to those entitled to receive notice.

They were further charged for not keeping a register of company members together with their membership details, an offence under section 158(1)(a)(b).

Each of the directors is liable to a fine between RM200 and RM500 for each of the offences, amounting to RM1,850.

Two additional charges, which related to the directors' alleged failure to table a profit-loss statement and an annual returns statement at the AGM within six months of closing the accounts, were not read in court today.

CCM's counsel, Aziz Mamat, said he needed more time to get permission from the deputy public prosecutor before charging the company officers with these alleged offences.

If found guilty of the last two charges, the directors could be fined an additional RM3,000, which would bring up the total fine to RM4,850 for each.

No hidden agenda

Speaking to reporters outside the court, Aziz denied that the charges were frivolous and trivial, saying CCM was merely enforcing legislation relating to the regulation of companies.

"This company is like any company limited by guarantee. The penalties are high because the Act says so. It is not my decision to say (how high or low these should be)," said Aziz.

"They could have been compounded (and avoided being charged), but the directors refused to pay the compound fine."

Aziz also dismissed allegations that there was any persecution of the Falun Gong group originating from higher authorities in the Home Ministry or the Chinese embassy.

"We are not involved in that. Those are not the reasons (for the charges). The reason is simply because Falun Dafa has not complied with the Companies Act," he said.

Banned since July 1999 by the Chinese government, the regime has dismissed the Falun Gong as a "cult" and persecuted its 60 million members in China for alleged "anti-China political activities".

With about 400 practitioners in Malaysia, the group's attempts to register with the Registrar of Societies had been turned down at least three times over the past six years in three different states.

The home ministry has defended the rejection as resulting from the opposition of the Chinese embassy in Kuala Lumpur.

The ministry also attributed its decision to the group's distribution of pamphlets that criticise the persecution of Falun Gong members in China, saying such "public criticism is tantamount to "interfering in the politics of another country".

Met outside court, the directors said they would appeal to the CCM for understanding and leniency and to have the charges dropped, as they are all working class people and volunteers in Falun Dafa, a non-profit entity.

According to a director, Lim Tian Khuan, a 42-year old clerk working in a equities company, they were all either middle- or lower-middle class workers.

"One of us is a taxi driver. Another is a chicken seller at a wet market. Why should we be fined? These are merely administrative offences, not criminal ones," he told malaysiakini .

The others, he said, include the owner of a welding shop, two who work in the insurance sector, a sub-contractor, and two office and finance managers.

"We appeal to the Malaysian government to ensure the rights of Falung practitioners in Malaysia to practise their thoughts, conscience and beliefs, and that their freedom of expression is not curtailed," the Falun Dafa said in a statement.