Malaysia updates its Companies Act

Malaysia has introduced legislation to update its Companies Act and replace the existing Act of 1965. The new Act will introduce the following major changes to the corporate law and regulations in Malaysia:

  • Introduction of single shareholder and director for companies
  • Abolishment of mandatory annual general meetings for private companies
  • Abolishment of rule of unanimity for written shareholder resolutions for private companies
  • Alternative procedure for reduction of capital and share buy-backs
  • Increased oversight over remuneration of directors
  • Relaxed restriction against indemnification of directors
  • Introduction of alternative corporate rescue mechanisms, such as corporate voluntary arrangement and judicial management schemes

Although this legislation has not been enacted yet, we would like to provide you with a brief comparison of the key changes between existing and the new Companies Act. The table below compares the two.

Comparison of the two companies acts

Companies Act 1965 pxnl3

 

Citco GSGS Update | January 2017

 

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Robert-Jan Kokshoorn

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Robert-Jan Bertina

Business Development,
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