Star workshop to help SMEs tackle new Act
THE Companies Act 2016, which came into effect on Jan 31, was drafted to increase the ease of doing business in Malaysia and to help SMEs be more competitive in an evolving business environment.
However, industry observers note that many SME owners and directors have yet to understand the changes in the new Act.
Star Media Group will be organising a half-day workshop on June 21 at 9am to give SMEs an overview of the key changes of the new Companies Act 2016 and contrast the changes with the old Act. One of the major changes introduced under the new law is the introduction of a single director company, which enables a company to be incorporated with only one member who can also double up as the sole director of the company.
Under the new law, a company could also replace the memoran- dum and article of association from the previous Act with a constitution lodged with the registrar.
Under the Companies Act 2016, private companies are also no longer required to hold annual general meetings. Instead, company decisions can be fully made through circular resolutions.
Additionally, a company is no longer required to state its authorised capital and newly-issued shares will no longer be tied with the nominal value when the company was incorporated.
Instead, a company is required to notify its issued share capital and paid-up capital and the related changes through the return of allotments. A company may also issue shares at a price depending on the factors affecting the current needs of the company.
The new Act also places more responsibility on company direc- tors to act in the interest of shareholders and the company.
For example, a director has to ensure that the firm would be solvent immediately after the dividend is paid out to safeguard the company from financial losses.
Also, the fines for offences and non-compliances are higher under the new Act. Company directors can no longer claim ignorance.
The workshop will highlight issues posed by the new Act and examine how these changes affect the company and its directors. It will also recommend practical tips on actions that can be taken by a company to maximise growth under the new law.
The workshop will feature Yon See Ting, a partner of Christopher & Lee Ong, and Samantha Tai, chief executive officer of Boardroom Corporate Services (KL) Sdn Bhd.
Yon has more than 20 years of experience as a corporate lawyer in Malaysia and is focused on corporate, corporate finance and commercial transactions including M&As, joint ventures, takeovers, debt and securities offering, IPOs, corporate restructurings and various commercial arrangements encompassing competition law.
Meanwhile, Tai has over 20 years of experience in corporate secretarial work and has provided extensive in-house training for directors of public listed companies. She is also a fellow member of the Malaysian Institute of Chartered Secretaries and Administrators.
The cost of the workshop is RM300 per participant exclusive of GST.