SSM’s Companies (Amendment) 2023 Bill Tabled for the First Reading in Parliament
The Ministry of Domestic Trade and Cost of Living (KPDN) through the Companies Commission of Malaysia (SSM), tabled amendments to the Companies Act 2016 for the first reading at Dewan Rakyat on 10 October 2023. The Companies (Amendment) 2023 Bill contains 31 clauses that are in line with international practices on anti-money laundering and enhance existing provisions to assist companies with financial difficulties during the Covid-19 pandemic.
The Bill is to enhance corporate transparency and accountability, the current beneficial ownership reporting framework has also been proposed to be in line with international standards and best practices. Under the Bill, a new comprehensive beneficial ownership reporting framework to obtain beneficial ownership information from its members and any person who is identified as a beneficial owner or has information relating to a beneficial owner of the company. Apart from that, the criteria also include the duty of an individual to notify a company of his status as a beneficial owner of the company and the obligation includes to notify any changes to the individual’s status as the beneficial owner and particulars recorded in the register of beneficial owners.
Once enforced, the Bill is expected to expand the application of corporate voluntary arrangement and judicial management to all companies except companies that are regulated by the Central Bank of Malaysia and companies that are licensed, approved, or registered under the Capital Market and Services Act 2007 [Act 671] and the Securities Industry (Central Depositories) Act 1991 [Act 453].
The Bill is scheduled for the second reading at Dewan Rakyat by the end of November 2023.
