One of the aims of the Companies Act 2016 is to strengthen shareholders’ rights. I anticipate further avenues for shareholders, in particular minority shareholders, to ensure that their rights are protected.
I set out below 7 changes to shareholders’ rights and remedies. In particular, some of these changes will likely lead to more shareholder litigation. This will test the exact limits of the new laws. For consistent reference, I will be referring to the term ‘shareholder’ and not to the term member of the company. Continue reading →
There were some new provisions under the Companies Act 2016 that caused a great deal of uncertainty on the signing of documents and contracts. One frequently asked question was whether all documents executed on behalf of the company now required at least one director to sign that document. Such a requirement would create tremendous logistical problems.
I explain this issue below and how there is now some clarification from the Companies Commission of Malaysia (SSM). Continue reading →
On 20 March 2017, I will be in Penang to deliver a talk on the Companies Act 2016: New Dynamics and Impact. This will be with CLJ Law and where you can also purchase my book at a special promotional price. You can click here to register or click on the image below.
It is now confirmed through the gazette notice. The Companies Act 2016 will come into force on 31 January 2017.
The entire Companies Act 2016 will come into operation except for the sections on: (1) the company secretary’s registration with the Registrar of Companies; and (2) the corporate rescue mechanisms. Hence, effectively, all companies will now have to operate under the Companies Act 2016 framework.
With 31 January 2017 merely days away, I set out the 10 crucial things companies can consider preparing for under the Companies Act 2016.
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.
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.]