About this E-Newsletter

This e-newsletter seeks to brief you on some of the latest development in the law that affects your business and corporate life.

The Companies Commission of Malaysia has made it compulsory for all Directors of companies to undergo a one and a half day training seminar to better equip themselves to serve as Directors. This is indeed a laudable move and it will certainly go a long way in enhancing and promoting good corporate governance in Malaysian companies.

A lot of people consent to be made Directors without appreciating the duties and responsibilities that come with such appointment. Duties include not just fiduciary duties but also statutory duties as well. It is particularly more crucial and critical when companies are going through tough times when Directors have to guard against being found guilty of fraudulaent trading. To assist all Directors in appreciating what they are getting into when they become Directors, we have included some brief notes on 'Duties and Liabilities of Directors' which we hope you will find useful.

The importance of Good Corporate Governance is also being highlighted and important elements of it are found in the notes on 'Corporate Governance'.

As Directors, you will be called upon to chair various meeting and we trust that the bullet-points notes on 'Law and Practice of Meetings' would be an invaluable guide to you.

The Companies Act 1965 have to be complied at all times by Directors of companies. Failure to do so, would expose the Directors to a charge for offences under the Act. Though the Registrar of Companies have a discretion to compound offences under the Act, the benchmark of all Directors should be to comply with all of the requirements under the Act within the stipulated times as part of the exercise of good corporate governance within the companies. The bullet-points notes on 'Common Offences under the Companies Act' seeks to highlight some of these common offences.

We trust that you will find your position in the companies that you lead as Directors both challenging and rewarding.

Cordially Yours,
Lee Swee Seng
Managing Partner