As of my knowledge, the Companies Act 2016 in Malaysia does not specifically mention a gift policy for companies. However, companies may choose to establish their own gift policy to ensure fairness and transparency in dealing with gifts received or given by employees, directors, or other related parties.
A gift policy typically outlines guidelines on acceptable and unacceptable gifts, the value threshold for receiving and giving gifts, and any reporting requirements. It is important for companies to have a gift policy in place to prevent conflicts of interest, bribery, or any unethical practices.
For payment of director fees:
According to the Companies Act 2016, private companies in Malaysia are allowed to pay director fees. However, there are specific requirements and procedures that need to be followed.
1. Authorization: The director fee must be authorized by the shareholders of the company. This is usually done through a resolution passed at a general meeting.
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2. Constitution:Â Constitution should contain provisions that allow for the payment of director fees.
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3. Director’s Approval: The director receiving the fee must approve the payment and abstain from voting on the resolution to authorize the fee.
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4. Disclosure: The details of the director fee, including the amount, method of payment, and any other benefits, must be disclosed in the financial statements of the company.
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5. Reasonableness: The director fee must be considered reasonable and reflective of the director’s responsibilities and duties to the company.
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6. Non-executive Director: For non-executive directors, the fees should be based on the market rate for similar roles and the director’s expertise and experience.