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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Update: Bursa Malaysia is Reviewing the Listing Requirements

 

In view of the coming into force of the Companies Act 2016, Bursa Malaysia had, in March 2017, issued a consultation paper to seek public feedback on its proposed review of Listing Requirements for ACE and Main Markets

According to Bursa, the key areas of review under the Listing Requirements include the following:

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Legislation Update – Amendments to the Solicitor’s Remuneration Order

 

The Solicitors’ Remuneration (Amendment) Order 2017 (“SRAO”) has been gazetted and came into effect on 15th March 2017. The SRAO increases the rate of the scale of fees to the First Schedule (fees for sales and transfers) and the Third Schedule (fees for charges, debentures, and other security or financing documents) of Solicitors’ Remuneration Order 2005 (“SRO”), which sets out the scale of fees payable in property transactions, including sale and purchase transactions (subsale and developer transactions) and charges, debentures, and other security or financing documents.

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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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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”

Land Acquisition – Balancing the needs of two parties

In this two part series, Liew Siew Pen explains the legal framework and procedures governing compulsory land acquisition

Introduction

The law of land acquisition is principally concerned with the rules governing the procedures to be followed in acquiring the land by compulsory means and with the awarding of compensation to the dispossessed landowner.

The rights of a property owner in Malaysia are governed by the following legislations:-

1) The Federal Constitution;
2) The National Land Code 1965 /Land Ordinance (Sabah Cap 68) 1950/Sarawak Land Code (Cap.81) 1958;
3) The Land Acquisition Act 1960/Land Acquisition Ordinance (Sabah Cap. 69) 1950/Part IV of the Sarawak Land Code (Cap.81) 1958.

Under Article 13 of the Federal Constitution, the nature and extent of property rights of a person are as follows:

(1) No person shall be deprived of property save in accordance with law.
(2) No law shall provide for compulsory acquisition or use of property without adequate compensation.

The above provisions ensure that a person is not deprived of his property without adequate compensation being made.

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