About The Conference
SSM National Conference 2017
“IMPLEMENTING THE COMPANIES ACT 2016. MOVING TOGETHER. GREATER TOGETHER’.
The wait is over. The commencement of the Companies Act 2016 and Interest Schemes Act 2016 on the 31st day of January 2017 bring over 14 years’ worth of thorough consultation, preparation and work to a conclusion.
The Companies Act 1965 (CA 1965) was repealed and replaced by the new, dynamic and modern legal framework of the Companies Act 2016 (CA 2016). The CA 2016 is a culmination of a 6-year comprehensive study and professional consultation engagement involving various critical stakeholders championed by the then Corporate Law Reform Committee (CLRC) which was established by Suruhanjaya Syarikat Malaysia (SSM) on 17 December 2003 to review the core company law. Subsequent to this, the Accounting Issues Consultative Committee (AICC) which was established by SSM, conducted a study to streamline and modernize the provisions of the CA 1965 relating to accounting and financial reporting in view of the development of applicable approved accounting standards and global best practices of the industry.
Post CLRC and AICC review programmes, there were also other considerations that have helped to shape the new Companies Act that came from various regulatory authorities, professional bodies as well as the World Bank’s Reports on the Observance of Standards and Codes (ROSC) for Malaysia on Accounting an Audit and Corporate Governance, the OEDC’s Peer Review Report on Transparency and Exchange of Information and the Financial Action Task Force (on Money Laundering and Terrorist Financing) (FATF).
On 2 July 2013, SSM released an exposure draft of the much awaited Companies Bill 2013 for public consultation. Subsequently the Companies Bill 2015 and Interest Schemes Bill 2015 were approved by the Cabinet on 24 June 2015 and completed the first reading in Parliament on 19 October 2015 followed by second reading on 01 April 2016. On the 04 April 2016, both the Companies Bill 2015 and Interest Schemes Bill 2015 were subsequently passed by Parliament. The Bills received the Royal Assent on 31 August 2016 and were gazetted on 15 September 2016 as the Companies Act 2016 [Act 777] and Interest Schemes Act 2016 [Act 778].
The CA 2016 has some revolutionary provisions like simplifying company incorporation and decision-making, introduction of no-par-value regime, introduction of solvency requirements, decoupling of annual return and audited financial statements, introduction of corporate rescue mechanisms. The changes in the new Act will have far-reaching implications that are set to significantly change the manner in which companies operate in Malaysia. This significant change impacts directly on professional advisors, SME companies and their directors.
“The new Act which came into force in stages on 31 January 2017, would not only lead businesses to modernization and a high level of professionalism, but would also make business easier for small and medium –sized enterprises” – YB Dato’ Seri Hamzah Bin Zainudin, Minister of Domestic Trade, Co-operatives and Consumerism.
“As the Act is new, it needs a paradigm shift in terms of understanding of the law and compliance is to be observed” – YBhg Dato’ Zahrah Abd Wahab Fenner, Chief Executive Officer of SSM.
“Now is the time for SSM and all stakeholders to move together to implement the Companies Act 2016″.
