Following the recent Annual Dialogue 2022 conducted by Suruhanjaya Syarikat Malaysia (SSM) on 6 October 2022, SSM provided the presentation slides and Summary of Issues and Feedback for the public.
Issues that have been addressed include:
Action administrative or blacklisting of the company secretary
The company secretary cannot make changes to other business information due to the administrative action or being placed on a blacklist.
Before executing any administrative action or blacklisting, it is recommended that a notification be issued.
Feedback:
SSM's objective is to improve compliance with legal requirements. One way to do this is to take administrative action against directors and company secretaries or put them on a blacklist.
The SSM has not yet initiated any administrative sanctions or blacklisting proceedings against a company secretary, except when the company secretary is also a company director that fails to pay the compound.
In addition, the secretarial companies that are subject to an investigation at the moment have the potential to be put on a blacklist or be subjected to administrative sanctions.
Currently, the SSM is initiating administrative action and blacklisting against many secretarial companies because these businesses have failed to file a statement of company affairs as required by section 484(1) of the Companies Act 2016. The action is to be taken once the compliance notice has been given and it has been established that the document has not been provided after the notice period has expired.
The administrative action and blacklisting status will remain in effect until the document in question has been lodged with SSM. In the circumstances such as this, no compound is given out.
SSM will consider granting temporary permission to the blacklisted secretary to allow transactions for other companies until the transaction is finalised.
Each temporary permission granted by SSM is granted on a case-to-case basis.
Each temporary release granted by SSM is determined individually.
Depending on case mitigation, the secretary can continue to communicate with SSM's Corporate Compliance Division to take further action if faced with the issue of blacklist/administrative actions.
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