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.
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.]
One of the significant areas I have been regularly speaking on is the upcoming Companies Bill. The Bill will revamp our aging Companies Act 1965 and bring long awaited reforms to our corporate landscape.