Companies Act 2016: The New Dynamics of Company Law in Malaysia

Companies Act 2016: The New Dynamics of Company Law in Malaysia

The Companies Act 2016 and Companies Regulations 2017 have come into force effective 31 January 2017. 

The Companies Act 2016 was passed by Parliament in May 2016, received Royal Assent on 31 August 2016, and subsequently gazetted on 15 September 2016.

The Companies Act 2016 is the result of a comprehensive law reform programme established by the Companies Commission of Malaysia which was conducted by the Corporate Law Reform Committee between 2004 and 2008. 

The Companies Act 2016 enacts fundamentally significant changes to company law in Malaysia. It introduces new concepts in relation to incorporation, capital allocation decisions, secured creditors’ rights, reporting requirements, corporate governance and rescue mechanisms. It is also a restatement of existing rules.  

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