Companies Bill to reduce red tape, cost of doing business — SSM

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KUALA LUMPUR: The proposed Companies Bill that sets out the new legal framework to replace the existing Companies Act 1965 embodies a dynamic corporate legislation in line with the government’s move to reduce procedures and cost of doing business.

Companies Commissions of Malaysia (SSM) chief executive officer Datuk Zahrah Abd Wahab Fenner said the proposed bill stipulated protection to stakeholders through improved corporate governance framework practices on par with developed countries.

He said the bill, which would be tabled in Parliament in October, would cater to the needs of the business community in the strive to provide a dynamic and competitive corporate environment.

“SSM has revised the Companies Act 1965 and gathered proposals to promulgate a modern and relevant corporate legislation to meet future business comparable with that of developed countries,” he said. A comprehensive review of the Companies Act 1965 was conducted by the Corporate Laws Review Committee and the Accounting Issues Consultative Committee established by SSM.

SSM expects the new Companies Act to be enforced within 12 and 18 months after the Act is approved by Parliament, she said. Zahrah said that the provisions proposed were expected to improve internal control, governance and corporate responsibility. – Bernama