Companies Act 2016: How does it impact Directors, CFOs, Accountants and Auditors?

21 July 2017

The Companies Act 2016 (CA 2016) has replaced the Companies Act 1965 with effect from 31 January 2017. The revamp of CA 2016 brings with it significant changes that may affect many parties, in particular business owners, directors and accountants in businesses and their dealings with external stakeholders such as the regulators, company secretaries and auditors.

The CA 2016 was formulated with the objective of increasing the ease of doing business in Malaysia, reducing the cost of compliance and improving corporate governance and internal control of companies.

The CA 2016 brings significant changes and introduces new concepts in relation to incorporation, capital allocation decisions, secured creditors’ rights, reporting requirements, corporate governance and rescue mechanisms. It is also a restatement of existing rules. Are you prepare for these changes?

This seminar seeks to provide knowledge and information to some of the critical changes and effects, given the Companies Act 2016, particularly how the new Act affects stakeholders, and how it feeds itself into the financial statements and the way audits are conducted.                   

Seminar fee

  • RM380 nett (Grant Thornton clients/alumni) or RM430 nett (non-clients) per participant (inclusive of 6% GST).

  • Fee includes seminar materials, refreshments and lunch.

  • Certificate of attendance will be given to all participants for registration of CPE/CPD points with the relevant professional bodies.
Ng Kean Kok
Ng Kean Kok Mr. Ng Kean Kok is a Chartered Accountant with more than twenty years of auditing, accounting and company secretarial experience across various industries. He had previously worked with one of the international accounting firms in the audit and advisory services and covered industries like agriculture, manufacturing, trading, marketing, banking and finance, and construction. He has served as a director and company secretary to several family related firms.

Programme outline

Module 1: Introduction
• Objectives of changes made to the  Companies Act
• Timeline of steps and process to changes to Companies Act, including  passing of the Companies Bill in Parliament and gazetting
• Preliminary discussion on definitions and the impacts

Module 2: Incorporation of Company
• Easier process for companies to be incorporated
• Particulars required
• Effect of CA 2016 on M&A (Constitution)

Module 3: Share Capital and No Par Value regime
• CA 2016 impact on share capital
• Introduction to No Par Value Regime
• Implications on accounting
• Double entry effects
• Share premium account
• Alteration of share capital
• Bonus issue
• Allotment of shares
• Solvency statements
• Capital reduction
• Redemption of preference shares
• Dividends

Module 4: Duties and responsibilities of Directors and Secretaries
• Brief on Duties and responsibilities of Directors and Secretaries
• Enhanced corporate governance requirements
• Review of s196 to s233

Module 5: Impact on Accounting – Financial Statements and Report
• Requirements on Approved Accounting Standards and its effect on Financial Statements
• System of internal control
• Disclosure requirements in financial statements
• Contents of Directors’ Report and Sample Report
• Time allowed for sending out copies of financial statements and reports

Module 6: Impact on Auditors
• Powers and duties of auditors (including duty in the course of audit of public company or company controlled by public company in relation to serious offence involving fraud or dishonesty)
• RPG 13 / 14
• Auditor’s remuneration
• Procedure to appoint auditor
• Removing auditor from office
• Resignation of auditor (including rights of resigning auditor)
• Attendance of auditors

Module 7: Other matters
• Review of pertinent issues in SSM’s FAQs
• General offences
   - False and misleading statements
   - False reports
   - False report or statement to Registrar
   - Fraudulently inducing persons to invest money
   - Fraud by officer
• Meetings
• Prospectus
• Power to require disclosure of beneficial interest in voting shares
• Links between CA 2016 and
   - LR: Chapter 15: Corporate Governance
   - MICG 2017

Karen Leo / Raymond Khor
  • Macalister Ballroom, Level 5, Victory Annexe Wing, Eastern & Oriental Hotel, Penang
Tel: 604-228 7828 Contact: karen.leo@my.gt.com / raymond.khor@my.gt.com
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