Corporate Compliance in Malaysia: Statutory Declaration

While requesting the appointed Company Secretary to certify a true copy (CTC) of some business-related documents, getting a statutory declaration is also one of the common practices amongst business owners who set up their business entities in Malaysia.

Statutory Declaration in Malaysia

However, as per the Statutory Declaration Act 1960, a statutory declaration is a formal statement by an individual as a supporting document need by the regulation. Hence, it will sign in the presence of a solicitor, commissioner of oath or a notary public.

Such statements are generally used to satisfy legal requirements as well as regulations when no physical evidence is available. Hence, the statutory declaration is required to be truthful and accurate.

When is a Statutory Declaration Used in Malaysia?

In Malaysia, a statutory declaration is used to finalise a Company financial statement before it is lodged to the Companies Commission of Malaysia (SSM). Other situations when statutory declarations are used include:

• The director of a Company changed his birth name by legally adopting their name and using it on personal documents such as passports and driving licenses. Also, such documents must have a statutory declaration to support their validity.
• Executors of a will
• Declaration of nationality or marital status when the document is missing or unable to retrieve
• Director of a Company to declare solvency when opting for voluntary liquidation

The Significance of a Statutory Declaration

Despite, as stated above, the law which governs the statutory declaration in Malaysia is the Statutory Declaration Act 1960. Eventually, the Act requires those documents with Statutory Declaration to be sworn or declared its truth and accuracy, with no elements of misrepresentation.

Besides, Under Section 2 of the Statutory Declaration Act 1960, those who may take and receive such declaration from a person voluntarily making such declaration is the Notary Public or Commissioner of Oath. Furthermore, the person will be set a fee for engaging in such a service.

Under Section 3 of the Statutory Declaration Act 1960, those who make false declarations will be penalised if caught.

Statutory Declaration in Other Countries

Also, foreign directors who wish to sign off their Malaysian registered Company financial statement and are not in Malaysia on the signing date, are required to have the statutory declaration section signed by the Notary Public in the country he is residing at that time.

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How to Word the Statutory Declaration?

Afterwards, the commissioner of oath or notary public will furnish a printed letter to the declarer to fill. Also, this will be titled the statutory declaration form.

However, there are cases where the declarer needs to write the declaration themselves in front of the commissioner of oath or notary public.

Certainly, in such a situation, the statutory declaration must contain the words below. After all, this provides a sample of the statutory declaration in Malaysia. There is no specific statutory declaration form in Malaysia, but the template to write a statutory declaration is below.

Sample of Statutory Declaration Form in Malaysia

I, (name)(NRIC/ID No.:) of (residential address) do solemnly and sincerely declare that …..

And I make this solemn declaration conscientiously believing the declaration to be true and by the Statutory Declaration Act, 1960.

Affirmed by: (Name)

At: (Place)

On: (Date and time)

Before me,

Commissioner of Oaths

Is it Possible to Make a Statutory Declaration in Malaysia Amid the Covid-19 situation?

It is famous that we are not living in the same situation as before the pandemic outbreak. Even though the strict standard operation (SOP) is to reduce the risk of spreading the virus, it does not make things easier for those who urgently need to engage some legal advisory and services.

Moreover, a statutory declaration in Malaysia needs the certification of certain Company/business documents to lodge with the Companies Commission of Malaysia (SSM). The fact that such an occurrence will need both parties, the client and the appointed notary public or commissioner of oath to be physically present to conduct such an act raises concern.

As a result to mitigate such a situation, one of the options available for the statutory declaration in Malaysia need to execute is by conducting a video conference call. However, as COVID-19 slowly needs to become as an endemic, the firms have to start an appointment basis for clients who wish to get their statutory declaration.