SSM unveils five initiatives to help businesses

Companies have been given an extension of up to three months after the end of the movement control order (MCO) to hold their annual general meeting, according to the Companies Commission of Malaysia (SSM).

However, the companies need to make an application to SSM to ensure such extension is not being abused, the regulator said in a statement today.

This is one of five additional initiatives being introduced by SSM to reduce the burden of the business community and corporate sector impacted by Covid-19, besides the two measures involving SSM that were already announced under the Additional Prihatin SME Economic Stimulus Package.

Under the package announced on April 6, the government is giving an automatic 30-day moratorium from the final day of the MCO for companies to lodge their statutory documents with SSM.

In addition, a three-month extension is granted for companies with financial year ended Sept 30 to Dec 31, 2019, to lodge financial statements, but they are required to apply to SSM for the extension with no fee imposed.

In its statement today, SSM said it will also extend the period to comply with Section 241 of the Companies Act 2016 for the Continuing Professional Education (CPE) for company secretaries until Dec 31, 2020, subject to certain conditions.

The regulator is also increasing the current indebtedness threshold from RM10,000 to RM50,000 until Dec 31, 2020, to reduce action to wind up companies. The period to respond to a notice of demand has also been lengthened to six months compared with 21 days at present.

Another initiative being launched is to extend the deadline of its 2020 Compliance Campaign of the Companies Act 2016, which initially was scheduled to end on April 30, to June 30, 2020. Under the campaign, SSM is providing a maximum compound reduction rate of 90 per cent to companies in certain situations.

Finally, the commission is also allowing - without approval required - companies limited by guarantee to collect donations from the public to help the sections of society facing hardships due to Covid-19.

- Bernama