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 (Mar 31).
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.
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.
