KUCHING, Jan 13: Compounds on companies with ‘dissolved’ status under the Companies Act 1965 and Companies Act 2016 will be reduced by 90 per cent of the original amount.
This is among the three compound reduction initiatives announced by the Ministry of Domestic Trade and Cost of Living (KPDN) today.
In a statement today, the Companies Commission of Malaysia (SSM) said the matter, which KPDN Minister Datuk Seri Salahuddin Ayub disclosed during the Ministry’s 2023 Preliminary Assembly recently, will be effective immediately.
“The implementation of this initiative aims to help ease the financial burden of directors and companies that have closed down,” it said.
SSM said for the second initiative, SSM introduced a compound reduction of 90 per cent of the original compound value for all common offences under the Companies Act 2016 with immediate effect.
According to the commission, the compound reduction will be given to the company after compliance with the failure or fault is taken action by the company.
It added compound reduction is only given for habitual offences under Section 68(1), Section 248(1), Section 258(1), Section 259(1), Section 340(1), Section 30(1) and Section 30(2) Companies Act 2016.
For the third initiative, SSM pointed out that they will continue to reduce the compound by 90 per cent of the original value of the compound for all offences under the Companies Act 1965.
“This initiative aims to ensure that the data stored in relation to company entities in the SSM registry is up-to-date and to encourage companies to comply with best governance practices, particularly the submission of Financial Statements and the latest information in SSM.
“In addition, it also eases the financial burden of companies towards the recovery of the country’s economy in the phase of transition to endemic,” it explained. — DayakDaily
