News & Articles

4 April 2016
Passed By Dewan Rakyat

28 April 2016
Passed by Dewan Negara

15 September 2016
Gazetted as Act 777

The New Companies Act

1. WILL FACILITATE
   Ease of Starting a Business and reduction of Cost


2. PROVIDE FLEXIBILITY
   Allows more leeway in managing internal affairs


3. ENHANCE GOVERNANCE
   Enhance internal controls
   Governance and Sustainability


4. ENSURE COMPLIANCE
   Deregulatory Approach

Modernising the Companies Act

• Simplify laws and procedures for companies
• Introduction of single member /single director for companies
• Statutory Declaration by Promoters/Directors to be replaced with Statement of Compliance
• Companies may adopt Constitution after incorporation of companies
• Company will no longer be required to state its authorised capital
• Migration towards no par regime
• Introduction of Members’ Rights for Management Reviews
• Power of members to require Circular Resolutions
• Continuing offences will be imposed daily fines
• New Regulations on disqualification of directors
• Abolition of maximum age for directorships
• Remuneration of directors of public companies to be sanctioned
• XBRL format of reporting for financial statements
• The Registrar has the power to exempt small companies audit
• Introduction of Business Review Report
• Dividends to be distributed out of profits and only if it meets the solvency tests
• Reforming the policies referring to share buyback and financial assistance via introduction of solvency tests provided that a special resolution is passed by the directors
• Introduction of Corporate Rescue Mechanisms through Judicial Management and Corporate Voluntary Arrangement to rehabilitate Companies.

IF YOU REQUIRE MORE INFORMATION OR ADVICE ON THE ABOVE, PLEASE CONTACT ANY OF THE CHARTERED SECRETARIES IN THE COMPANY SECRETARIAL DEPARTMENT