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Companies Act 2016 Becomes Effective From 31 January 2017

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Companies Act 2016 Becomes Effective From 31 January 2017

 KUALA LUMPUR, Jan 27 — The Companies Act 2016, passed by Parliament last year, will come into force in stages from Jan 31, 2017, said the Companies Commission of Malaysia (SSM).

In a statement today, SSM said the Companies Act 2016 would replace the Companies Act 1965 and improve the ease of doing business in the country.

SSM Chairman Datuk Seri Jamil Haji Salleh said the legal framework revamp was aimed at cultivating the spirit of entrepreneurship among the public as there were many policies that could have a positive impact on companies.

“One of them is the introduction of the concept to establish a company with just one shareholder and one director for the ease of doing business.

“Under the new act, various deregulatory measures would be introduced to allow companies to operate more efficiently,” he said.

For example, he said annual general meetings were no longer required to be held by private companies, instead the resolutions could be made via circulation,” he said.

Jamil said in order to improve the implementation of the Companies Act, the Companies Regulations 2017 and the Interest Scheme Act 2016 would also be enforced on the same date.

“The Interest Schemes Act is an alternative platform for fundraising by companies through interest schemes,” he said.

For more information on the Companies Act 2016, the Companies Regulations 2017 and the Interest Scheme Act 2016, the public can visit the SSM’s website at www.ssm.com.my.

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