The Companies Commission of
Malaysia or the SSM is a government run body. This body regulates the formation
of new companies as well ensures that current companies comply by the rules.
Moreover, The SSM is the body that enforces the Companies Act of 2016.
But what is the Companies Act of
2016? Set and enforced by the SSM, the Companies Act 2016 is a list of rulings
and legislature in relation to companies and business activities in Malaysia.
It was revised in 2016 from the previous version declared in 1965. This was to
ensure that the rules and regulations fit the modern economic landscape of
Malaysia.
One of the laws regarding the formation of new companies in Malaysia states that all
private limited companies must appoint a company secretary. A minimum of one
secretary must be appointed. However, the board may choose to appoint more if
they wish.
Ordinarily, a company secretary
is largely a clerical position. One which encompasses record keeping and note
taking for the company. This includes event organization as well. However, with
the revision of the Companies Act in 2016, there was also revisions made to the role of the company secretary. As of today, the company secretary in Malaysia
has three main roles.
They are to be the head of
administration of the company. They are to act as an advisor on board meetings.
This advice pertains government regulations, procedures and company policies.
They are also to ensure that the company acts in compliance to all the
regulations set by the SSM as well as other governing bodies.
In order to be approved by the
SSM to be a company secretary, individuals will have to make a formal
application. Along with this application, individuals will also be tasked to
sit for an examination. Afterwards, they will have to attend an assessment
interview. This application costs RM 50. If they are successful, they will be
issued their license. This license requires a fee of RM 150. This license of
approval has a three-year validity. Afterwards, renewals must be applied for.
Currently, the SSM has detailed the following responsibilities for the company secretary:
Company officer
As the company officer, they
occupy a very senior position in the company hierarchy. They are the heads of
administration. While they may have a team working for them, they are solely
responsible for the following:
- They are to file their annual returns to the SSM within the stipulated deadline
- They are to organize all meetings with the board involved
- They are to consult with the SSM to select the date for the annual general meeting
- They are to call for and organize the annual general meeting
- They must consult with the board to ensure everyone can attend the meeting
- They must record the minutes of the meeting
- They are to be the custodians of the company seal
Board advisor
As the board advisor, the company
secretary will be one of the persons the company looks toward for company
growth. As such, they must possess the following:
- They must have sufficient knowledge of the Memorandum and Articles of Association
- They are to be aware of all the laws and regulations stated by the Companies Act 2016
- With whatever advice they give, they must keep the interests of the company as a priority.
- They must have up to date knowledge of the economic climate and business trends
- They are familiar with the market demographic of the company
- They have sound knowledge of the products and or services the company offers
Agent between the company and the SSM
The SSM has tasked the company
secretary to ensure the company follows all regulations. As such, they are to
do the following:
- Gives notice to the SSM if changes are made to the constitution of the company
- Acts as an official ensuring the company keeps in line with all the laws and regulations
- They are to submit all documents of records to the SSM within the stipulated deadlines
Agent between the company and other parties
As the company secretary they are
also the initial contact for other parties to communicate with the company.
This role will have the following:
- Relay the verdict of meetings to shareholders of the company
- Liaise with external parties that want to work with the company
In addition to these
responsibilities, the Companies Act has also advised company secretaries to
possess the following:
- Knowledgeable in all related fields. These include business law, finance, SSM regulations etc.
- A willingness to learn and upgrade information as necessary
- Effective communication skills, along with this, one must be good at listening
- Diplomatic and respectful in all encounters
- Is objective with judgments regarding the company
- Is confident and charismatic
- Has problem solving skills
- Displays strong leadership qualities
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