Are you considering becoming a director or shareholder of a Malaysian Sdn. Bhd. company? It’s crucial to understand your duties and responsibilities to ensure smooth operations and legal compliance. Here’s a simplified guide:
Who Can Be a Director in Malaysia?
Directors must:
- Be 18 years or older
- Be a natural person
- Reside in Malaysia
- Not Be an undischarged bankrupt
- Not be disqualified or convicted of certain offences
- Have not been impriosned for specific offences within five years
The Role of a Director
Directors are responsible for:
- Calling and managing meetings
- Making decisions for the company
- Managing the company’s business and affairs
- Preparing and filing statutory documents
The Duties of a Director
Directors have fiduciary and statutory duties, including:
- Acting in the company’s best interest
- Avoiding conflicts of interest
- Disclosing interests in contracts
- Ensuring proper use of power
- Updating company records
Liabilities of a Director
Directors may face personal liability if they fail to fulfill their responsibilities, such as:
- Insolvency
- Making false reports
- Illegal distributions
- Inability to pay debts
Penalties for Breaching Company Law
Breaching company law can result in fines, compounding, delisting, dissolution, or reprimands. Directors must adhere to legal requirements to avoid penalties.
Understanding these roles and responsibilities is essential for directors and shareholders alike. By fulfilling your duties, you contribute to the success and integrity of the company.
Feel free to use this simplified guide to navigate your role as a director or shareholder in a Malaysian company responsibly.