Interest Schemes FAQs by SSM

The Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia - SSM) has produced a useful set of FAQs for the burgeoning interest schemes sector here. The FAQs are reproduced below for ease of reference.

It should be noted that although the FAQs are title captioned "Interest Scheme" they relate more to recreational clubs scenarios.

Most interested parties seek information on Interest Schemes that are in the nature of "common enterprise" as opposed to recreational clubs. Inquiries of this nature can be directed to our law firm at c_t_choo@yahoo.com

Are all clubs required to be registered with SSM?

Not all clubs are required to be registered with SSM. Only clubs falling within the definition of section 84 of the Companies Act 1965 and unlisted recreational clubs must be registered with SSM.

How long does it take to register an interest scheme?

It takes 14 days from the date of receipt of a complete application to register an interest scheme.

What is the required paid-up capital?

The required paid-up capital is RM5 million for golf clubs and RM1 million for other clubs or schemes.

Can the club memberships be transferred?

Club memberships can be transferred depending on the conditions set by the operator company.

Who can be appointed as Trustees of clubs?

Only Trust Companies registered under the Trust Companies Act 1949 which have obtained prior approval for appointment from the Minister of Domestic Trade and Consumer Affairs can be appointed as Trustees.

Who determines the membership fees?

The operator company determines the membership fees.

Is any payment required for lodgement of the Trust Deed?

Before the Trust Deed is lodged, a draft must be submitted for perusal and approval. The perusal fee for the said draft is RM250.00.

What is the registration fee for a prospectus of an interest scheme?

The registration fee is RM1,300.00.

Are there any guidelines issued by SSM for interest schemes?

The two guidelines issued by SSM are: Policy Guidelines and Requirements for Timesharing Arrangements; Policy Guidelines and Requirements for Sales of Club Memberships.