The Director's Responsibility to Update Company Secretary on the Changes of Passport and Residential Address
Introduction
In today’s dynamic business environment, directors must navigate through a multitude of legal obligations to ensure the smooth operation of their companies. One such crucial responsibility is to keep the company secretary informed about any changes to their passport and residential address. In this article, we delve into the importance of this duty and its implications for businesses.
A Company Secretary plays an essential role in ensuring that a company complies with statutory and regulatory requirements. This includes keeping accurate records and facilitating communication between the Company and Government Agencies.
The Legal Framework
Under the Companies Act 2016 of Malaysia, Section 236 mandates that every Director must notify the company of any change in their residential address and passport details within 14 days. Additionally, the Company Secretary must be kept informed to facilitate the updating of the company’s statutory records. Failing to do so can result in late filing fees imposed by the Companies Commission of Malaysia (SSM).
SSM imposes late filing fees on companies for each day the information remains unreported. These fees can accumulate rapidly, posing a substantial financial burden on the company.
Ensuring Timely Compliance
Directors should prioritize timely compliance with the notification requirement. Regularly updating the Company Secretary on changes to passport and residential address is a proactive step in avoiding late filing fees. Directors can do this by submitting the necessary documents and information promptly to the company secretary.
Maintaining Good Corporate Governance
Beyond regulatory compliance, timely updates also reflect a commitment to good corporate governance. It ensures transparency and accountability within the company’s leadership, which is vital for maintaining stakeholders’ trust. Failure to fulfil this responsibility can result in questions regarding the director’s ability to manage the company effectively.
Conclusion
In the intricate web of business regulations, Directors must prioritize updating the Company Secretary about passport and address changes to prevent late fees and protect the company’s reputation. Comprehending the legal framework allows Directors to ensure compliance, uphold corporate governance, and secure their company’s future success.
