ACT 125
COMPANIES ACT 1965 (REVISED - 1973)
PART III - CONSTITUTION OF COMPANIES
DIVISION 2 - POWERS

 
Section 36. Prohibition of carrying on business with fewer than statutory minimum of members.
 
Section 36. Prohibition of carrying on business with fewer than statutory minimum of members. (COMPANIES ACT 1965 (REVISED - 1973) - ACT 125) If at any time the number of members of a company (other than a company the whole of the issued shares of which are held by a holding company) is reduced below two and it carries on business for more than six months while the number is so reduced, a person who is a member of the company during the time that it so carries on business after those six months and is cognizant of the fact that it is carrying on business with fewer than two members shall be liable for the payment of all the debts of the company contracted during the time that it so carries on business after those six months and may be sued therefor, and the company and that member shall be guilty of an offence against this Act if the company so carries on business after those six months.

Penalty: Two thousand ringgit. Default penalty.