KUALA LUMPUR: The bill seeking to amend the Companies Act 2016 will be tabled in the Dewan Rakyat next month during the second meeting of the second session of the 15th Parliament, said Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh.
The bill drafted by the Companies Commission of Malaysia (SSM) is aimed at improving the existing legal framework related to corporate rehabilitation, she said.
“The Cabinet has approved the bill’s policy and it is awaiting the approval of the Attorney General’s Chambers.
“Following the Dewan Rakyat, it will be tabled in the Dewan Negara and must be gazetted before coming into force,” she told a press conference after officiating at a ceremony to celebrate SSM’s 21st anniversary here today.
SSM chairman Ahmad Sabki Yusof said the enhancement and amendment would allow companies facing financial problems to request for 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 a 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,” Ahmad Sabki said.
Meanwhile, Fuziah urged micro businesses to come forward and register voluntarily with SSM to facilitate the process of collecting data 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, and roadside stall operators — want to apply for the targeted subsidies, it is best that they register as they consume oil in large quantities,” she added.
In 2022, 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. – Bernama
