New companies bill to be tabled in 2011

The Companies Commission of Malaysia (SSM) will propose to table the new Companies Bill in Parliament next year.

Its chief executive officer, Datuk Azmi Ariffin, said the draft of the new Bill, which was set to replace the existing Companies Act 1965, would be ready by year-end and was scheduled to be introduced next year.

"It is high time the contents of the existing Bill are reviewed holistically to have in place an effective and dynamic corporate legal framework to assist the growth of the country's economy," he told a media briefing on the new Bill here today.

Azmi said the SSM was in the midst of drafting the new Bill based on the 19 policy statements that would serve as the general parameters for the formulation of the new Bill.

"Among them are dynamic legal framework for all companies, simplifying decision-making process, establishing a mandatory registration regime for practising company secretary and modernising the enforcement regime," he said.

He said the new Act would align with the national agendas crafted towards achieving Vision 2020, the Government Transformation Plan, the New Economic Model and the 10th Malaysia Plan.

"The government is committed to ensuring corporate regulatory framework remains competitive to attract foreign and domestic investments, spur entrepreneurship and facilitate the conduct of business," he said.

The main features to be found under the new Act include:

(A) The introduction of single-member company: This allows companies to be incorporated only by one person.

(B) The introduction of non par value regime: The shares issued by a company will no longer be required to have a nominal value. This concept will allow a company to determine the value of its shares at the time it was issued based on the circumstances specific to the company.

(C) Sustainable-centric provisions: Companies will be required to make voluntarily statements relating to economic, social and environmental benefits associated with operating more sustainably.

Source: Business Times