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Review of Companies Act underway
Published on: Tuesday, August 05, 2003
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Kuala Lumpur: The Companies Commission of Malaysia has started on the review of the Companies Act 1965, Domestic Trade and Consumer Affairs Minister Tan Sri Muhyiddin Yassin said.He said the review would include simplifying the process of incorporation, facilitating capital raising as well as reducing compliance costs for companies in Malaysia.

“So far, amendments made to the Companies Act 1965 have been piecemeal, usually made to address current issues of concern,” he said after launching the “2003 National Conference on Internal Auditing” here Monday.

“An overall review seems imminent in the light of hoards of development globally as well as in our corporate sector.”

He added that the process should be open and fully consultative for it to fully achieve its goals.

No date was mentioned on when the results of the review would be announced.

“While we strive to improve our company law to gain competitive edge, we must also strive to ensure our processes are efficient and business friendly to ascertain an environment that is conducive to attract investments,” he said.

The review will encompass all companies, whether listed or non-listed.

Currently, the Malaysian code of corporate governance required directors of listed companies to identify the principal risks the company faces and to appropriately manage risks.

The board is also required to review the company’s internal control system as well as its strategic and succession planning activities.

Meanwhile, Muhyiddin also said the authorities had sought to drive home the idea that a change in the corporate culture was needed.

“The idea is for companies to voluntarily adopt the best practices in corporate governance and not merely because the authorities say so,” he said.-Bernama


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