6 Major Changes to Companies Act 2016 in Terms of Formation of CompaniesChange in Company Act Part 1 of 4

01eKTP 25

02Formation of Companies under new Companies Act 2016
 

The Companies Bill 2015 has received Royal Assent and has been gazetted as the Companies Act 2016 on 16 September 2016. The Act sets out the legal framework that will replace the current Companies Act, 1965 and the objective is to introduce a modernized corporate legal framework for Malaysia.
 

The key changes under the new Act in terms of Formation of Companies are as follow:

a. Simplified incorporation process
b. Introduction of single shareholder and single director companies
c. No more Memorandum and Articles of Association
d. Common seal and share certificate becomes optional
e. No Annual General Meeting for private companies
f. Abolishing the unanimity rule for written shareholder resolutions
 

The above changes will reduce the administration cost incurred by the company.