New Companies Act milestone for Malaysia

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. What is the primary aim of the new Companies Bill 2015 that will replace the existing Companies Act 1965?

  2. Company directors/management draws up a debt restructuring plan which is assessed by an independent insolvency practitioner. The restructuring scheme must be then be approved by a simple majority of shareholders and no less than 75 percent in value of creditors. The abovementioned corporate rescue scheme for financially distressed companies under the new Bill is known as -

  3. Once the Bill becomes effective, shares issued will have no par value and share premium will form part of the share capital. To ensure a proper transition to the new requirement, the Bill has set out/up -

  4. Under the new Bill, company directors are likely to face increased sanctions compared to the existing Companies Act 1965. The sanction will entail -

  5. There is added responsibility placed on directors of companies under the new Bill as they will be required to sign a solvency statement to the effect of a statutory declaration that the company is solvent when it undertakes the following -

  6. For dividends that were not properly paid, or was not received in good faith by shareholders and they are aware that the company did not satisfy the solvency assessment, the new Companies Bill 2015 empowers the company to -

  7. The mandatory audit regime is retained but the Companies Commission of Malaysia (CCM) is now empowered to exempt certain categories of companies. What is the exemption criteria set out under the new Bill?

  8. When is the effective date of the new Companies Bill 2015 in Malaysia?

  9. In terms of ease of doing business, under the new Bill a company can -

  10. Which of the following is NOT a requirement of the new Companies Bill 2015 with regard to doing business in Malaysia?