Companies Act 2016 Malaysia Common Seal

The new companies act 2016 new ca provides for easier incorporation of companies compared to the existing companies act 1965 ca 1965.

Companies act 2016 malaysia common seal. Highlights of the companies act 2016 by. According to reports the major changes are in relation to the incorporation procedure of companies the omission of authorised share capital and par value for shares as well as a corporate rescue mechanism for companies. Common seal is not necessary companies act 1965 companies act 2016. Law of malaysia.

Companies incorporated post 31 january 2017 being the effective date of the new act have the option of whether to. Effectively all companies in malaysia will now have to operate under the companies act 2016 framework. On 31 august 2016 the companies act 2016 ca 2016 had been gazetted to replace the companies act 1965 old ca to provide greater flexibility certainty and ease for those operating or doing business using malaysian companies. The fact that common seal requirement is optional under the law is irrelevant as the directors still have a duty to act within their proper authority.

A company having an official seal for use outside malaysia may in writing under its common seal authorize any person appointed for the purpose to affix the official seal to any deed or other document to which the company is a party. Sections 210 234 of the companies act 2016 provide for directors duties and responsibilities. Signatures of 2 authorised persons 1 of them should be the director. Australia 2017 cheng co.

An individual being the single shareholder and single director can incorporate a company. Nor azimah abdul aziz deputy ceo regulatory enforcement companies commission of malaysia. The companies commission of malaysia ssm or the registrar have notified that the ca 2016 and company regulations 2017 cr 2017 will be. Under the companies act 2016 new act the m a is replaced by constitution.

Affixing of the common seal as outlined in the act. One stop professional centre. Under the companies act 1965 old act a memorandum and articles of association m a is required for a company to be incorporated. Be prepared for the change in doing business in malaysia.

Lee shih common seal companies act 2016 companies bill 2015 execution of documents lee shih section 66 of companies act 2016 previous article a bird s eye view of drone regulation in malaysia next article changes to property related legal fees from 15 march 2017. Directors who breach these requirements may face civil and or criminal enforcement actions.