Alpha Corporate Services

KLANG BRANCH

32 Lorong Angsa, Taman Berkeley,

41150 Klang, Selangor Darul Ehsan, Malaysia

SUBANG BRANCH

E-08 E-Tiara Serviced Apartments,

Jalan Kemajuan Subang SS16,

47500 Subang Jaya, Selangor, Malaysia

 

KUALA LUMPUR BRANCH

16D, Jalan 6/5, Taman Komersial Pandan Indah, 

55100 Kuala Lumpur, Malaysia

Call or Whatsapp Mr Leslie at +6012 229 7733

Email info@alphacorporate.com.my

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What are the major differences between the Companies Act 1965 and Companies Act 2016?

November 7, 2018

 

The Companies Act 2016 was brought into force in stages, starting from 31 January 2017. The Companies Act 2016 is a culmination of more than 10 years of Malaysia’s corporate law reform process. There have been some significant amendments to the old Companies Act 1965, summarized briefly below:

  • Companies will no longer be required to state its authorised share capital

  • Simplify laws and procedures for companies, promoters may incorporate companies

  • Introduction of single member / director company

  • Company may adopt M&A and A&A after incorporation

  • Abolish requirement for private companies to hold Annual General Meeting

  • Power of members to require circulation of statements

  • Migration towards no par value regime

  • Introduction of members’ right for management review

  • Introduction of corporate rescue mechanism through Judicial Management & Corporate Voluntary Arrangement to rehabilitate companies

  • Reforming policies relating to share buyback and financial assistance via introduction of solvency test

  • Introduction of Business Review Report

  • Introducing alternative procedures for reduction of capital through solvency statements

  • Dividends can only be distributed out of profits and is only allowed if it meets solvency test

  • Remuneration of directors of public companies to be sanctioned

  • Abolish the maximum age for directorship

  • Statutory declaration by promoters / directors to be replaced with statement of compliance

  • Increased sanctions on directors and secretaries for breaches under the Act, which include heavier fines and longer terms of imprisonment.

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