KUALA LUMPUR, March 31 — The Companies Commission of Malaysia (SSM) has announced three initiatives related to compound reduction this year and the continuation of five existing initiatives with some improvements in line with the government’s efforts to contribute to the recovery of the country’s economy after the COVID -19 pandemic.
SSM chief executive officer Datuk Nor Azimah Abdul Aziz said the first initiative involves the compound reduction of up to 90 per cent from the original value for companies with dissolved status under the Companies Act 1965 and Companies Act 2016
“The implementation of the initiative was aimed at reducing the financial burden of directors and companies that have been shut down,” she told Bernama today.
She said as the second initiative, SSM is introducing a reduction of 90 per cent of the original value of the compound for all common offences under the Companies Act 2016.
“This compound reduction will be granted to the companies after the companies had taken steps to rectify their past defaults,” she said.
Nor Azimah said the compound reduction is only given to common offences under Sections 68(1), 248(1), 258(1), 259(1), 340(1), 30(1), and Sections 30(2) of the Companies Act 2016.
“The implementation of the initiative is hoped to help corporate communities to continue doing business in a difficult economic environment,” she said.
Meanwhile, she said that under the third initiative, the SSM will reduce the penalty for all violations of the Companies Act 1965 by 90 per cent of the original value to ensure that data on company entities in the SSM register is up to date.
The initiative also aims to encourage companies to adhere to best corporate governance practices, especially the filing of financial statements and the latest information in the SSM
Under the fourth initiative, which is also one of the five existing initiatives and continued this year, SSM is extending the deadline for free SSM BizTrust registration to Dec 31.
SSM is also extending the use of the SSM BizTrust QR code to registered Limited Liability Partnerships, which can be obtained automatically.
“Under the fifth initiative, SSM continues the implementation of the Skim Pendaftaran Perniagaan Percuma (SPPP) initiative that was introduced in 2021 to offer free business registration to B40 group entrepreneurs and full-time Institute of Higher Education students,” she said.
According to Nor Azimah, this year, the SPPP requirements will be extended to married B40 entrepreneur couples to encourage the entrepreneur households to use business as one of the sources of income to address the current economic challenges.
Under the sixth initiative, SSM will continue the Skim 1 OKU 1 Perniagaan (S1O1P) which offers free business registration and renewal to encourage persons with disabilities to become legally venture into business.
“Under the seventh initiative, SSM will proceed with the proposed amendments to improve the provisions of the Companies Act 2016 relating to corporates rescue mechanisms and compromise or arrangement schemes,” she said.
Nor Azimah said the improvements and amendments will allow companies that are experiencing financial problems to apply for an appropriate corporate rehabilitation procedure so that the company can continue to operate.
She added that the initiative was crucial to help the corporate sector, which is facing financial problems, especially due to the impact of the COVID -19 pandemic, to stay operational and boost the national economy.
“A proposed amendment to the Act will also introduce provisions that will strengthen the policy on a comprehensive framework for reporting of beneficial ownership,” she said.
Also, Nor Azimah said that with the eighth initiative, the SSM will continue with the proposal to introduce provisions related to the corporate rescue mechanism under the Limited Liability Partnerships Act 2012.
She said that these provisions are aimed at improving the existing legal framework relating to corporate rehabilitation for PLT entities.