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Partner Norhisham Abd Bahrin Conducts an In-house Training on Companies Act 2016

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The Companies Act 2016 (Act 777) came into force on 31 January 2017. The enforcement date marks the first phase of implementation of the new Companies Act with exception of Section 241 and Division 8 of Part III of the Act. With the first phase implementation, the previous 50 year old Companies Act 1965 (Act 125) will cease to exist and will affect the entire legal landscape for corporate players.

The implementation of the new Companies Act 2016 aims to be business-friendly, by making it easier for companies to be incorporated and managed as well as to facilitate the entry of home-grown businesses into the corporate world. As the new Companies Act sets out a new legal framework that has totally replaced the old Companies Act 1965, Malaysian corporate citizens and entities will now have to prepare themselves to comply with a more demanding new legal regime. As a result of that, the Firm took a step further in ensuring their lawyers further develop their knowledge and understanding of the Companies Act 2016 by inviting our Partner, Encik Norhisham Abd Bahrin as speaker for a one day in-house training on the New Companies Act 2016. The workshop was held on 9th March 2017 at the Azmilaw Academy and was attended by 33 legal personnel ranging from partners, associates and pupils.

During the one day in-house training, the following key changes to the Companies Act 1965, among others, was highlighted by Encik Norhisham:

  1. Single director and single shareholder regime for private companies
  2. No requirement to convene annual general meetings for private companies
  3. Constitutional documents
  4. Directors enhanced roles and responsibilities under the Solvency Statement
  5. Migration to no par value regime
  6. Capital reduction without the need for a court order
  7. Exceptions to the general prohibition on financial assistance
  8. Enhanced penalties
  9. Solvency tests for corporate transactions
  10. New corporate rescue mechanisms

The attendees were enlightened by the knowledge and experiences shared by our Dato’ Azmi Bin Mohd Ali and Encik Norhisham Abd Bahrin and it is hoped that the information obtained from this training will help the attendees to have a better understanding and awareness towards the changes of the Companies Act 2016 and create a greater future for the Firm.

The training was a great opportunity for the attendees to brush up and strengthen their knowledge and skills in understanding the new 2016 Act and it is hoped that what was learnt from this training will be useful in assisting the attendees understand better the intricacies of the new Companies Act 2016.