Companies (Amendment) Bill 2019: 4 key amendments relevant to financial reporting
- Key message: Since the Companies Act 2016 came into force on 31 January 2017, the Companies Commission of Malaysia received feedback from stakeholders on the need for several provisions to be amended to ensure good practices and better compliance with the law. The Companies (Amendment) Bill 2019) was passed in the Dewan Rakyat on 10 July 2019 and the Dewan Negara on 31 July 2019 and will soon be gazetted.
- Practical impact: There are 4 key amendments that are relevant to financial reporting:
(i) redemption of preference shares out of capital;
(ii) power to alter share capital;
(iii) non-conterminous accounting period of group companies; and
(iv) appointment and fixing of auditors’ remuneration at the Annual General Meeting of