1. Incorporation
2. Constitution (Memorandum & Articles of Association)
3. Shares and no par value regime
4. Annual returns and financial reporting
5. Execution of documents
6. Accounts, audit, annual general meetings
7. Boardroom excellence
8. Meetings and decision making
9. Enforcement data and transitional issues

Part 6 - Accounts, audit, annual general meetings

Question 1. In the foreseeable future, are Malaysian companies ready to move into an era where audit is not mandatory? When?

Answer: Under section 255 (3) of the Companies Act 2016, the Registrar may exempt certain class of companies from compliance with requirements relating to financial statements. The categories for such exemptions shall be released soon.

Question 2. Is audit exemption applicable to a private company which is a subsidiary of a public listed company?

Answer: Generally, the law requires every company to appoint an auditor for each financial year. However, under section 267(2) of the Companies Act 2016, the Registrar is empowered to exempt certain categories of private companies from having to appoint an auditor for a financial year. However, the Registrar has yet to invoke this provision and therefore, the audit requirement is still mandatory for all companies.

Question 3. Is a private company which is a subsidiary of a public listed company required hold AGM?

Answer: The requirement to hold annual general meeting is only applicable to public companies. Therefore, this requirement does not apply to a private company which is a subsidiary of a public listed company.

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Source: SSM