Companies Bill tabled for second reading in Dewan Rakyat

The 2015 Companies Bill which seeks to make an impact in improving internal controls, governance and corporate responsibility was tabled for the second reading at the Dewan Rakyat today.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainuddin said the bill was aimed at replacing the Companies Act 1965 or Act 125 which was enforced in 1966 and regulated by the Malaysian Companies Commission (SSM).

"As the Act has aged almost 50 years, there is a need to introduce new policies and procedures in line with economic development, corporate sector expansions and globalisation," he said when tabling the bill today.

In addition, he said the bill was aimed at abolishing obsolete procedures which were no longer relevant in the context of modern business and reducing cost of compliance via simplification of laws and deregulatory measures.

He said it would also give flexibility to companies in their daily operations without compromising internal controls and corporate governance practice.

"Overall, the bill will help the business community, especially in the small and medium industry, to be more competitive," Hamzah said.

The bill was then debated by several members of parliament including Datuk Ikmal Hisham Abd Aziz (BN-Tanah Merah) who wanted SSM to play a more active role in monitoring companies affiliated to the agency.

"This is because there were many cheating cases involving companies taking place of late.

"For example, a newspaper recently reported how 11 individuals lost almost RM6.3 million when they became victims of cheatings by a company masquerading as foreign currency dealers.

He also hoped the new act would take into account how stern action could be taken against individuals who opened up companies and then shut them down after committing an offence, such as not paying the salaries of workers.

The Dewan Rakyat sitting resumes on Monday.