Frequently Asked Question
How to remove or cease a director of a Malaysian company?
According to the Malaysian Company Act 2016, a director of a company may be removed from their position by a resolution of the company’s shareholders. In order to cancel or cease a director, therefore, you would need to put forward a shareholder resolution to that effect.
Cancellation or ceasing of a director may also take place if they resign from their position, or if they are disqualified from holding office due to insolvency or bankruptcy. Finally, directors may also be removed from office by court order. Removal proceedings can be initiated by any member of the company. For example, File an application at Court and obtain an Order to remove the Director concerned. This will require grounds for removal which must be specified in the application.
What are the procedures to remove a director from a company in Malaysia?
Under the Malaysian Company Act 2016, there are a few ways in which a director of a company may be removed from their position. These include if the director:
- Resigns from his role, in writing, and submits this notice to the company
- Is declared bankrupt or insolvent
- Is convicted of an offense and sentenced to imprisonment for a term exceeding 12 months
- Fails to comply with any order or direction of the Court relating to the affairs of the company
- Becomes disqualified from being a director due to mental or physical incapacity, or for any other reason specified in the Act.
Who can remove a director of a company in Malaysia?
In general, the shareholders of a Malaysian company have the power to remove a director from office. However, there are some exceptions to this rule under the Malaysian Companies Act 2016.
For example, if a director is appointed by the court or is a public officer, then he or she can only be removed from office in accordance with the provisions of the Act. Additionally, if a director is appointed pursuant to a contract of service with the company, then his or her removal from office must be in accordance with the terms of that contract.
What is the fee to remove a director from a company in Malaysia?
There is no specific fee to remove a director from a company in Malaysia. However, there may be some costs associated with putting forward a shareholder resolution to that effect, as well as any costs associated with court proceedings if the director in question is removed from office by court order.
How long does it take to remove a director in a Malaysian company?
The time it takes to remove a director from a company in Malaysia will depend on the method used to remove the director. For example, if the director resigns from their role, then their removal will take effect immediately. However, if the director is removed by shareholder resolution, then the process may take a few weeks to complete. If the director is removed by court order, then the process may take several months.