HIGHLIGHTS OF THE 
         COMPANIES ACT 2016
                           By:
                       Nor Azimah Abdul Aziz
                  Deputy CEO (Regulatory & Enforcement)
                   Companies Commission of Malaysia
     THE REFORMINITIATIVE
               CorporateLawReformInitiative                                   The 4 year review by CLRC
                                                                            issued 12 Consultative Papers
                                                                                CLRC’s Final Report was
                      Aproposaltorepealthe                                   issued in 2008 comprising of
                        CompaniesAct1965                                        188recommendations on 
                                                                               wide-ranging  aspects from 
                                                                              incorporation to winding-up
               TheproposedCompaniesBillis                                     TheAICC was established in
             draftedbasedonthe 4yearreview                                    2010and submitted its Final
                  conductedbyCLRC&AICC                                                 Report in 2011
                                                                             Recommendations bythe
               PublicConsultationonthedraft                                  WorldBankReports,
              CompaniesBillwasconductedin                                    developments inrelated laws
                                 July2013                                    (Capital Market and Banking
                                                                             legislations)
                                              Copyrights Reserved Companies Commission of Malaysia              2
          IMPACTS OFTHENEWCOMPANIES ACT 2016
                                                                              Copyrights Reserved Companies Commission of Malaysia                                                            4
                                                                                                       Companymay 
                                                                                                     adoptM&A&AA 
                                                                                                   after incorporation
                                                                              IntroductionofMembers’ 
                               MigrationtowardsNo                               Right ForManagement 
                                  Par ValueRegime                                             Review
                               MODERNISING THECOMPANIESACT
                                                                   Introduction of             Dividends be distributedout of profitsand is
                                                                   Business Review                   only allowed if it meets solvency test
                                                                          Report
                                                                                                           abolishingthe
                                                                                                        maximumagefor
                                                                 Copyrights Reserved Companies Commission of Malaysiadirectorship                             5