See lauds move to reveal real owners
We welcome and fully support the initiative to enact provisions in the MACC Act to make it mandatory and a necessary requirement for the registered companies and corporations to reveal the identities of the true beneficial owners to prevent some of the owners from using the names of their proxies to avoid legal responsibilities and action by the authorities. See Chee How, Batu Lintang assemblyman and PKR Sarawak vice president
KUCHING: The move by the federal government to introduce new provisions in the country’s anti- corruption laws to compel businesses to reveal the identities of the real owners who reap the profits should be lauded as this is a positive step to enhance the fundamentals of good governance, said Batu Lintang assemblyman and PKR Sarawak vice president See Chee How.
See said: “We welcome and fully support the initiative to enact provisions in the MACC Act to make it mandatory and a necessary requirement for the registered companies and corporations to reveal the identities of the true beneficial owners to prevent some of the owners from using the names of their proxies to avoid legal responsibilities and action by the authorities.”
In law, a registered company is a separate and distinct legal entity from the owners who are the registered shareholders.
Therefore, generally, a company is distinct from its shareholders, directors and officers.
It may sue and be sued in its own name and holds property separately to its owners, said See who is a trained lawyer.
Hence, in principle, the owners do not own the assets of the company and are not personally liable for its debt and obligations, he added.
However, there are provisions in Malaysia’s Companies Act to expose and penalise those who were found to have abused the principle of separate entity of company and shareholders for the latter’s personal enrichment to the detriment of others, involvement of criminal offences, frauds and in cases where the shareholders and directors are held personally liable to creditors for debts incurred by the company, he pointed out.
“The Courts are now more willing to lift the corporate veils to make individuals responsible and accountable for their abuse of the separate entity principle, fraudulent and criminal acts when justice of the case so requires,” said See.
“It leads to some owners taking the illegal and immoral steps to exploit the ignorant folks and devise the deliberate or calculated act to defraud and deceit to use the names of proxies to avoid legal responsibilities and the detection and action by the authorities.” However, the government should simultaneously train and equip enforcement officers with the necessary knowledge and expertise to investigate and uncover such wrong- doings.
“The mandatory disclosure of the identity of beneficial owners of the companies will add bites to the anti- corruption legislatures, but it is in any event a criminal and penal offence for the true owners to scheme and attempt fraudulent and such criminal acts of deceit against the authorities and others,” said See.
“And I am glad that the government is now devising a National Anti- Corruption Plan, to tackle the ills of corruption in a holistic manner.
“Indeed, we need to educate and inculcate moral values that caution schoolchildren against corruption, and it is long overdue that we require all departmental heads and members of the administration to champion the effort to combat corruption.” Most importantly, the Pakatan Harapan new administration must undertake efforts to promote integrity in its financial management, to stop and prevent corrupt practices, leakages and wrongful or unnecessary spending, he stressed.