Govt to table Companies Act amendment bill in May

 

Deputy domestic trade and cost of living minister Fuziah Salleh said the bill’s policy has been approved by the Cabinet and is awaiting the green light from the Attorney-General’s Chambers. (Bernama pic)

KUALA LUMPUR: A bill seeking to amend the Companies Act 2016 will be tabled in the Dewan Rakyat next month, said Fuziah Salleh.

The deputy domestic trade and cost of living minister told a press conference that the bill drafted by the Companies Commission of Malaysia (SSM) will improve the existing legal framework relating to corporate rehabilitation.

“The Cabinet has approved the bill’s policy and it is awaiting the approval of the Attorney-General’s Chambers.

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“After the Dewan Rakyat, it (the bill) will be tabled in the Dewan Negara and must be gazetted before coming into force,” she said after officiating SSM’s 21st anniversary celebration today.

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SSM chairman Ahmad Sabki Yusof said the enhancement and amendment would allow companies facing financial problems to request an appropriate corporate rehabilitation process in order to remain operational.

He described it as an important initiative to assist the corporate sector in facing financial problems especially due to the Covid-19 pandemic’s effects, allowing companies to keep operating and contributing to the national economy.

The bill will also introduce an allocation to strengthen the policy regarding comprehensive beneficial ownership reporting framework, he said.

“The amendment is to prevent companies from being wound up so they can stay afloat and remain in business.

“Without a corporate rescue mechanism, creditors can take legal action and invoke an insolvency declaration, so we want to avoid that,” Sabki said.

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On a separate note, Fuziah urged micro businesses to come forward and register voluntarily with SSM to facilitate the data collection process and ensure the disbursement of targeted subsidies for items such as cooking oil can be done smoothly and effectively in the future.

“If they – including night market and petty traders, as well as roadside stall operators – want to apply for the targeted subsidies, it is best that they register (themselves) as they consume oil in large quantities,” she added.

Last year, the government spent more than RM80 billion for subsidies, incentives and assistance.

The largest expenditure was for consumption subsidies, which totalled RM66.3 billion and covered petrol, diesel, liquefied natural gas for cooking, cooking oil, electricity, poultry and eggs. - FMT