Companies Commission of Malaysia

The Companies Act 2016 in force on 31 January 2017: 10 Things To Immediately Prepare For

Lee Shih46 Comments

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.

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With 31 January 2017 merely days away, I set out the 10 crucial things companies can consider preparing for under the Companies Act 2016.

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Launch of My Book on the Companies Act 2016

Lee ShihLeave a comment

Today was the official launch of my book on Companies Act 2016: The New Dynamics of Company Law in Malaysia. For those of you interested to purchase a copy, you can click on the image below to place your orders with CLJ Law. The retail price of the book is RM250.

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I am incredibly proud and very humbled to see the book finally in print. I hope that it contributes in some small way to the development of company law in Malaysia. Continue reading →

Companies Act 2016: Effective 31 January 2017

Lee ShihLeave a comment

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.]

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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.

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Companies Act 2016: Small Companies Do Not Need Auditors

Lee ShihLeave a comment

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.]

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Image from NY – http://nyphotographic.com

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Choosing the right business vehicle for your startup or small business in Malaysia

Marcus van GeyzelLeave a comment

This post is a part of a series based on my Law for Startups workshop at MaGIC in September 2015. It’s a basic introduction to legalities for startup founders. You can .

Read the earlier posts for context:

  1. Law for startups in Malaysia — building on the best foundations.
  2. The legal landscape in Malaysia for startups — a hybrid of traditional corporate practices and Silicon Valley models.

One of the earliest decisions that a startup or small business founder will have to make is choosing the right business vehicle through which the business/idea will be carried out.

Business vehicle options

The most common business vehicle options in Malaysia are —

  1. sole proprietorships / partnerships;
  2. private limited liability companies (Companies / Sdn Bhd); and
  3. most recently, the limited liability partnership (LLP).
Unfortunately, Elon hasn't made this vehicle available in Malaysia yet.
Unfortunately, Elon hasn’t made this vehicle available in Malaysia yet.

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Companies Bill: Reforming Malaysia’s Corporate Landscape

Lee ShihLeave a comment

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.

At the recent Malaysian Legal and Corporate Conference on 7 October 2015, I gave a short interview to The Edge TV.

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I was asked to give a very short summary on some of the changes we could expect in the law:

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