The Companies Commission of Malaysia (SSM) has announced that the Companies Act 2016 will be brought into force, in stages, starting from 31 January 2017. [update: The gazette notice has been issued. Almost all of the provisions of the new Act will be brought into force on 31 January 2017. I have written about this and the 10 things to immediately prepare for.]
There is a lot of uncertainty on which parts of the new Act will be brought into force first. What are some of the immediate changes that will be effective in two weeks’ time? I try to deal with some of these issues.
What will be brought into force on 31 January 2017?
SSM will be launching its new portal MyCoID 2016 (the website is still not live yet) to replace the existing MyCoID portal. In particular, starting from 31 January 2017, SSM intends to have all incorporation of companies to be applied through the MyCoID 2016 portal. The functions on this new portal will cover:
- Registration of users.
- Application for company names.
- Incorporation of companies limited by shares.
- Incorporation matters: nomination of the first company secretary, and lodgement of the Constitution and e-stamping.
- Return of allotment of shares.
- Change in the Register of Members.
For the existing MyCoID portal, users will have to be aware of the brief transition stage, starting from 25 January 2017 onwards.
What are some of the uncertainties?
It is not clear if the Companies Act 2016 will be made effective on 31 January 2017 such that companies can be incorporated under the provisions of the new Act. For instance, whether companies can be incorporated with a single member, whether the constitution provisions would now apply and whether the newly incorporated companies will enjoy no-par value.
SSM had earlier stated that the intention was to bring most of the provisions of the new Act into force, except for the corporate rescue provisions of corporate voluntary arrangement and judicial management. It is not clear whether 31 January 2017 will see many of the provisions of the new Act coming into force.
Find out more on 24 January 2017
On 24 January 2017, I will be speaking at a CLJ Law talk on the Companies Act 2016. One of the speakers will be Puan Nor Azimah, Deputy CEO of SSM. She would be able to share firsthand on the changes expected on 31 January 2017 and beyond.
Some of my related posts on the Companies Act 2016 are below:
- Malaysia’s Companies Bill Passed: The 7 Upcoming Changes
- 3 Things Companies Should Prepare for under the Companies Bill
- Interview on Focus Malaysia regarding the Companies Bill
- The New Corporate Rescue Laws in the Companies Bill
- Companies Act 2016: The New Dynamics of Company Law in Malaysia