Kuala Lumpur, 15th September 2016- The long-awaited Companies Bill 2015 has received Royal Assent on the 31st of August 2016 and has been gazetted on the 15th of September 2016 as the new Companies Act 2016 (Act 777.). However, the new Act has not been enforced yet. The new Companies Act 2016 promises to keep Malaysia abreast of developments around the world and update our company laws to be similar to other major jurisdictions. One of the major change is that Companies may now have unlimited capacity as the Act gives companies the choice of not specifying object clauses. This effectively means that the ultra vires defense by companies which choses to have no specific object clauses cannot be invoked. Another major change is that companies can now be incorporated and managed with a single individual or corporate shareholder and need only have one resident director thus reducing incorporation and operating costs of doing business. Other changes to the Companies Act 1965 includes the end for Par Value shares, more efficient meetings and resolutions processes, new corporate rescue mechanisms, M&As not compulsory any more, abolishment of AGM for private companies and many more. .
A copy of the Gazzeted Act can be download here at the link below;