Monday, April 11, 2016

Features of the new Malaysia Companies Act 2016

In a nutshell, the new Malaysian Companies Act 2016 will contain the following new features that were previously not available in the old Companies Act 1965-
  • Allowing unlimited capacity for companies;  
  • Single shareholder and single director companies;  
  • Removal of mandatory Annual General Meetings for private companies;  
  • Removal of the unanimity rule for written shareholder resolutions for private companies; 
  • Removal of the par value regime;  
  • New financial assistance treatment;  
  • New reduction of capital and share buy-back procedures;  
  • Increased oversight over directors' remuneration;  
  • Relaxation of restrictions against indemnification of directors; and  
  • Introduction of alternative corporate rescue mechanism e.g. corporate voluntary arrangement and judicial management schemes.