Lenders and Borrowers: What you need to know about the Companies Act 2016

 

In this article, we highlight certain aspects of the Companies Act 2016 (“CA 2016”) that have implications for Lenders and Borrowers.

A) Execution of documents: common seal is optional

Section 61 of CA 2016 now provides that a company may, but does not need to have the common seal.

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Share and Capital Maintenance under the Companies Act 2016

This article is fifth in a series entitled A New Corporate Landscape: Key Changes under the Companies Bill 2015 that our clients should know about.

In this article, we outline the major changes relating to the management and restructuring of share capital under the Companies Act 2016 (“new Act”).

Key Change 10: No Par Value for Shares

Par value is the minimum price at which shares can be issued. Under the old Companies Act 1965, shares are issued with a par or nominal value and companies are required to declare authorised share capital. The new Act abolishes this concept.

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Welcome, Companies Act 2016: 5 immediate things to take note of

 

While many of us were overdosing on mandarin oranges and pineapple tarts last week, the Companies Act 2016 (“the new Act”) came quietly into force. Although its debut may have been overshadowed by the CNY celebrations, its far-reaching effects will no doubt become apparent, moving up your priority list long after the mah-jong table has been stored away, and the last yee sang for the year tossed.

To assist you in getting a quick handle on the new Act, here are 5 things to immediately take note of:

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New Companies Act 2016: Legal Link Alert

The Companies Commission of Malaysia has announced that it will start enforcing the Companies Act 2016 in stages from 31st January 2017. Hence, in the midst of the coming week’s Chinese New Year celebrations, corporate Malaysia will be waking up to a new landscape. Below is a brief checklist to help assess your level of preparedness for the coming into force of the Companies Act 2016.

No hiding in the shadows: Increased director’s accountability under Companies Act 2016

This article is third in a series entitled A New Corporate Landscape: Key Changes under the Companies Bill 2015 that our clients should know about.

As alerted in our previous issue of The Legal Link, the Companies Bill 2015 has received Royal Assent and shall come into force next year. We continue our series setting out the key changes under the new Act, and this time round, will examine changes relating to the accountability of directors in the running of companies.

Key Change 5: Heavier penalties for directors under the Act

The new CA 2016 imposes harsher sanctions for directors who breach the Act. The RM30,000 fine under the present Companies Act 1965 has been raised to a whopping RM3,000,000.00. Hence, directors found guilty of breaches constituting serious offences, may find themselves facing a five year term of imprisonment, a fine of RM 3,000,000.00 or even both without the possibility of compound (the CA 2016 has taken away the power of the Registrar to compound offences). Continue reading “No hiding in the shadows: Increased director’s accountability under Companies Act 2016”

An Easier Meeting of Minds: Meetings/ Resolutions under the Companies Act 2016

This article is second in a series entitled A New Corporate Landscape: Key Changes under the Companies Bill 2015 that our clients should know about.

Since our first article in this A New Corporate Landscape series, the Companies Bill 2015 has received royal assent and has been gazetted as the Companies Act 2016 (from hereon and the rest of the series, the new Act will be referred to as “CA 2016”).

Once the CA 2016 comes into force, it will bring substantial changes to the manner in which a company is run, or corporate decisions made. Particularly, key changes are brought to the area of meetings and written resolutions. Continue reading “An Easier Meeting of Minds: Meetings/ Resolutions under the Companies Act 2016”

Clear(er) Roads Ahead: Incorporation of companies under the Companies Act 2016

company_bill_bannerThis article is first in a series entitled A New Corporate Landscape: Key Changes under the Companies Bill 2015 that our clients should know about.

Background to the Companies Bill 2015

CCLC’s clients have no doubt seen the headlines and heard much spoken of the impending changes under the Companies Bill 2015. The Bill has been passed by both houses of parliament and it is only a matter of time before it comes into force on a date to be notified in the Gazette.

The Companies Bill 2015 intends to reform the Malaysian corporate legal framework by replacing the outdated Companies Act 1965. Amongst the key aims of the Bill are to increase the ease of doing business, and to increase legal and corporate governance. Continue reading “Clear(er) Roads Ahead: Incorporation of companies under the Companies Act 2016”