Frequently Asked Question
Who is eligible to be a director of a company in Malaysia?
The Companies Act 2016 defines a director as “a person who is appointed to the board of directors of a company”. There are several eligibility requirements that must be met in order to appoint an individual as a director of a company in Malaysia:
- Firstly, the Companies Act 2016 states that a director must be at least 18 years old
- Secondly, a director cannot be an undischarged bankrupt or someone who has been convicted of offences involving fraud or dishonesty
- Thirdly, a director must have the necessary experience and skills to contribute positively to the company.
- Lastly, a director must not have any conflict of interest with the company.
What is the fee for appointing a new director in a company in Malaysia?
The fees for appointing a new director in a company in Malaysia is RM 250. This service is provided by our company secretary. You just need to place the order online.
How to appoint a new director in a company in Malaysia?
Under the Malaysian company act 2016, a director can be appointed in one of two ways – either by way of a resolution passed at a general meeting of the company, or by way of a written instrument signed by all the directors.
How many directors can be added in a company in Malaysia?
A private company limited by shares is allowed to have a minimum of one director. However, the number of directors can be increased to 50 if the company is listed on Bursa Malaysia or any other recognized stock exchange. The directors must be appointed by the shareholders in a general meeting and must be holders of at least one share each.
What is the responsibility of a director in a company?
The responsibilities of a company director vary depending on the company’s organizational structure, but can generally be classified into the following categories:
- Duty of care – The director must act in the best interests of the company and its shareholders, and must exercise reasonable care, skill, and diligence when making decisions on behalf of the company.
- Conflicts of interest – Directors must avoid any conflicts of interest that may arise in their role as director. This includes not taking advantage of their position to gain personal financial benefit or to unfairly prejudice the interests of the company.
- Disclosure and transparency – Directors must disclose any information that is material to the company and that could reasonably impact shareholders’ ability to make informed decisions about their investment. This includes disclosing any personal interests that may conflict with the company’s interests.
- Compliance with laws and regulations – Directors must ensure compliance with all applicable laws and regulations, including those relating to financial reporting and disclosure, insider trading, and anti-corruption.
- Corporate governance – Directors must uphold the highest standards of corporate governance and promote ethical business practices within the company. This includes ensuring that the board of directors is diverse and independent, and that board meetings are conducted in a transparent and fair manner.
What are the qualifications of a director in a company?
The Companies Act 2016 requires that at least one director of a company must be a natural person who is resident in Malaysia. There is no requirement for directors to have any specific qualifications, but they must be able to demonstrate that they have the knowledge and experience to discharge.