This month, Suruhanjaya Syarikat Malaysia (SSM) charged two ex-directors under Section 218(1)(c) and Section 221(1) of the Companies Act 2016.

Their offences were approving a salary increment without AGM consent and failing to declare their interest in a tenancy agreement involving company property.

At first glance, it looked like a small internal dispute.

But to every auditor and tax agent, this case is a clear reminder.
When directors fight, governance collapses.
When governance collapses, the auditor gets hit first.

In my 25 years of practice, I have seen this too many times.
One director quietly signs a resolution.
Another refuses.
Emails start flying, WhatsApp messages become “evidence,” and everyone cc’s the auditor “for transparency.”

That is the moment I know it is no longer about numbers. It is about power.

People often ask me, “Mr. Koh, why you resign? You still can audit mah.”

Technically yes.

But when directors stop communicating, independence is already gone.
Every figure becomes suspicious.
Every transaction becomes a potential landmine.
And no audit fee can buy peace of mind.

At KTP, we have a clear policy.
If there is an internal dispute between shareholders or directors,
we resign immediately.
We do not take sides.
We protect our independence, integrity, and our licence.

Resigning is not weakness.
It is professionalism.
Because we audit financial statements, not family quarrels.