MyAirline Boss....his money comes from where?

Very good information for the public.

Most of these schemes uses Redeemable preference shares (RPS) to bypass deposit taking schemes which needs license from BNM and has to pass very2 stringent tests.

Most of the agents selling these products will say the Preference shares gives ‘guaranteed high’ returns and the capital invested is also guaranteed. Most of these agents are not financially literate to give financial advise and most of their initial customers will be family members and close friends.

However at least 99.% of investors in these schemes DO NOT read or understand the information memorandum (Info Memo) published by the company………. Most DO NOT even ask for a copy of the info memo.

Basically RPS doesn’t guarantee the returns and capital invested in them.

It merely is an instrument that gives the RPS any dividends declared by the company priority over common shareholders IF and WHEN the company makes profit.

It certainly doesn’t guarantee investors will get any Dividends or their invested capital back.

There are no laws in our country that can force the promoters to pay investors dividends or capital invested if the company lose all the money UNLESS it can be proven there is fraud . Even in such a case , investors may only recover whatever is left in the company.

Yes…… the promoters can be charged and put in prison if found guilty BUT investors will still not get back their money.

Promoters can find many ways to purposely invest in bad investments ………… they will probably have personal ownership in these other companies……….. investors will lose money BUT the company they invested which belongs to the promoters will make money. Promoters may even invest in very2 high risk/high returns investments……….. if lose money, investors in the scheme will incur losses……… if make very2 good profits, investors will only get the ‘promised/guaranteed/indicative dividends and the promoters will keep anything above the dividends paid out.

In the meantime, promoters can also pay themselves very2 generous remunerations while managing investors money.

The way things have been going, promoters may even get away with DNAA or minimal punishment if/when the AG accepts letter of Representation .