I have been working hard over the last few months writing my book, ‘Companies Act 2016: The New Dynamics of Company Law in Malaysia‘. The process was tiring but very rewarding. It was a culmination of my 10-over years of experience in company law.
My co-author is Kenneth Foo, an experienced Chartered Company Secretary. In this book, we have combined our experience in company law, company secretarial, compliance and insolvency practice. The book will be officially launched at an event on 24 January 2017. Read below for more information.
[edit: As an update, the Bankruptcy (Amendment) Bill 2016 was passed by both houses of Parliament. It has now become an Act and has received Royal Assent on 10 May 2017. However, it will only come into force on a date to be fixed by the Minister.]
On 21 November 2016, the new Bankruptcy (Amendment) Bill 2016 was tabled in Parliament for its First Reading.
The new Bankruptcy Bill will bring about significant changes to Malaysia’s bankruptcy laws. This comes against a backdrop of rising bankruptcy cases, especially for individuals under the age of 35.
I set out below the 10 major changes to be ushered in under the Bankruptcy Bill. In summary, it can be seen that the new Bankruptcy Bill is more borrower-friendly and will make it more difficult for creditors to commence and maintain bankruptcy proceedings.
Under the Companies Act 2016, it appears that dormant companies and small private companies will no longer need to appoint auditors. This audit exemption will allow startups and SMEs to enjoy further cost savings in the running of their businesses.
Allowing for audit exemption also brings Malaysia in line with practices in other countries like the UK, Australia and Singapore.
[edit: The Companies Commission of Malaysia has now published the feedback it has received on the public consultation on the proposed audit exemption. I have written about it here.]
At the MIA International Accountants Conference 2016 today, I spoke on panel session on the Companies Act 2016.
The speaker from the Companies Commission of Malaysia (CCM) announced that the new Act will be brought into force in the first quarter of 2017, except for the provisions on the two new corporate rescue mechanisms of corporate voluntary arrangement (CVA) and judicial management (JM). Time is needed for the subsidiary legislation for CVA and JM to be drafted and approved by the Rules Committee under the Courts of Judicature Act 1964. The target would be for CVA and JM to be brought into force before the end of 2017.