This Consultation Paper focuses on the first stage of the review work that has been carried out by Working Group B of the Corporate Law Reform Committee (‘CLRC’) established by the Companies Commission Malaysia to review the Companies Act 1965.
The CLRC, whilst carrying out its current review and making its recommendations as reflected in this Consultation Paper, was guided by two key principles:
With this in mind, the CLRC has proposed to abandon two key concepts that currently mould the rules regulating capital raising by companies. These are the concepts that:
The CLRC believes that its proposal to do away with par or nominal value of shares will, in addition to simplifying company operations, also promote corporate governance. This is because, as will be discussed in the accompanying Consultation Paper, company accounting will be simplified as ‘share premium accounts’ and ‘capital redemption reserves’ will be irrelevant. Hence, company accounting will become more transparent and easier to understand.
This Consultation Paper will, amongst other things, provide reasons for the CLRC’s recommendations and address some of the concerns that the public may have in respect of the CLRC’s recommendations.
The accompanying Consultation Paper is made up to two parts:-
We hope to receive views and comments on the recommendations stated in this Consultation Paper. Please reply to Nor Azimah Abdul Aziz at the Companies Commission of Malaysia (SSM) by 22 SEPTEMBER 2005.
Download consultation document “On Capital Maintenance Rules and Share Capital: Simplifying and Streamlining Provisions Applicable to Share” (.pdf)
Download “Responses On Capital Maintenance Rules and Share Capital: Simplifying and Streamlining Provisions Applicable to Share” (.pdf)