In my earlier post, I had highlighted the proposed audit exemption for dormant companies and small companies under the Companies Act 2016. This would be carried out through a Practice Directive on Audit Exemption. The Companies Commission of Malaysia (SSM) invited feedback on this proposed move.
SSM has now published the feedback it has received and has extended the deadline for feedback until 28 February 2017. From the feedback, there appears to be mixed views. In general, there is support for allowing dormant companies to no longer require an auditor. However, there are differing views on whether to allow audit exemption for small companies. A majority of the responses objected to such an exemption. Continue reading →
Early on in my legal practice, I thought to myself that I would like to one day be featured in one of the business dailies. I wanted to work hard so that I had enough knowledge to share my views.
Coincidentally, I was already following Marcus’ Counsel column in The Edge. I did not know my fellow The Malaysian Lawyer back then. He was one of the few lawyers (if not, only lawyer) writing regularly on corporate-related matters at that time. I was thinking this relatively young lawyer, with the ang moh surname, already had his own column in a leading financial newspaper.
Marcus and I of course eventually met in person, became good friends, and then on a whim, set up The Malaysian Lawyer website. We wanted to continue to share our writing. Specifically, cutting out unnecessary legalese and use clear effective language in our legal articles.
From our small platform, the number of readers of The Malaysian Lawyer has exploded and it has been picked up by media outlets. Bloomberg TV, BFM radio and Focus Malaysia have all come across this website and invited me to speak with them.
More recently, I was featured on the cover story for Malaysia SME newspaper for their 11 June 2016 edition. I was interviewed on the impact of the new Companies Bill on SMEs in Malaysia. Continue reading →
About two weeks ago, I had a pre-recorded interview with BFM to share my views on the new Companies Bill 2015.
This morning, the segment was aired as part of its Current Affairs series. You can click on to the podcast.
I generally shared why the new changes are to be welcomed and I traced the long process to arrive where we are at. On the one hand, we adopted the best practices from other jurisdictions. However, I also shared my personal thoughts on certain areas where we could have improved further. Finally, I shared how the different segments of the industry may be worried about the unknown and of the new.
After my earlier introduction and summary of the new Companies Bill, I will be writing a series of articles on the new Companies Bill. I aim to release an article every few weeks or so, touching on the different areas of the new law. For ease of reference, I will continue to refer to it as the Companies Bill and insert the clause references in brackets.
I kick off this series by focusing on 3 things existing companies should already look out for under the Companies Bill. While the Companies Bill may only come into force in the next 6-12 months or so, I highlight 3 areas companies should start preparing for right now.
In summary, these 3 areas are:
Your existing Memorandum and Articles of Association: Do you need to fine-tune the provisions?
The new law will shift to a no-par value regime: Impact on your existing share premium account.
Putting in place checklists and guidelines for the new internal processes.
The new Companies Act will undoubtedly transform Malaysia’s corporate landscape. Underpinning the changes are the aims of spurring entrepreneurship, making the corporate vehicle more attractive for businesses, deregulating certain aspects of the corporate process, and to introduce the concept of corporate rescue for ailing companies.
It is anticipated that the new Companies Act itself will not be brought into force until a year’s time or so. This is because the new regulations, rules and guidelines will still need to be drawn up.
I set out below 7 of the more significant areas we will see in the new Companies Act. Continue reading →