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How Corporate Secretarial Firms Benefit Malaysia’s Companies

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How Corporate Secretarial Firms Benefit Malaysia’s Companies

2020-12-18T13:53:42+08:00December 19, 2019|0 Comments

Benefit of Corporate Secretarial Firms to Malaysia’s Companies

 

Corporate secretarial firms are primarily used for the management of any company’s administrative functions. They also ensure that a company fulfills its compliance and reporting requirements. Many companies in Malaysia choose to utilize the services of a company secretary who is a named individual from a corporate secretarial firm. For the purposes of recording and reporting, this person will be the person named as the official company secretary for that particular company. A company which has been incorporated in Malaysia is required to fulfill several different requirements as specified by Malaysia’s company laws. Any failure to comply with these requirements could result in fines, imprisonment, or both. Therefore, many companies engage the professional services of a corporate secretarial firm to ensure complete compliance. Fortunately for business owners across Malaysia, the country is home to many corporate secretarial firms. However, it also ought to be noted that every corporate secretarial firm in the country will have its own methods of operation.

Why Corporate Secretarial Firms Are Necessary in Malaysia

According to the company laws of Malaysia, every company in the country is required to appoint a company secretary. It is important that every company hire a company secretary who is able to fulfill all of the requirements of the company because it is possible for the company secretary to be held accountable for the failure of the company to fulfill all of its compliance requirements. Therefore, companies in Malaysia should consider selecting a company secretary from a well-regarded corporate secretarial firm because it is likely that such a company secretary will come with a reputation for performing high-quality corporate secretarial work.

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How Corporate Secretarial Firms Work with Malaysian Companies

Corporate secretarial services differ from country to country. Each country’s corporate laws necessitate different corporate secretarial tasks to be completed by each company. Such is also the case in Malaysia. However, in Malaysia, many newly formed companies and business ventures may sometimes find it difficult to remain in complete compliance with all regulatory and compliance matters of the country. Therefore, corporate secretarial firms work with companies all over Malaysia in order to ensure that adequate standards of corporate governance are always maintained. Corporate secretarial firms in Malaysia perform any of a great many tasks. Some of these are related to preparation of documents and reports. Such documents to be prepared are those of a complete set of annual general meeting (AGM) documents, minutes of directors’ and shareholders’ meetings, the company’s statutory records, and the directors’ report. Corporate secretarial firms also maintain a company’s register of members. They also attend to various matters involving the shares and shareholders of a Malaysian company. These matters include share registration, share transfers, shareholder communication and queries, rights of shareholders, monitoring of shareholders’ actions, and shareholder relations. They are also entrusted with the company’s corporate governance by reviewing developments of this corporate governance. Corporate secretarial firms also manage payment of dividends and interest and also file annual returns with regulatory authorities. They also provide various forms of assistance to the directors and auditors of the company. Therefore, it has been shown that corporate secretarial firms work with Malaysian companies in multiple different ways.

 

Details About Corporate Secretaries in Malaysia

Hiring a company secretary from a suitable corporate secretarial firm must be done by any Malaysian company because a capable and trustworthy company secretary to ensure that businesses are kept in a positive financial condition.A company secretary in Malaysia must not only possess all necessary qualifications, but must also be suitably competent and knowledgeable to bear such a high level of responsibility. Should a company secretary fail to carry out all necessary duties, the directors of the company may be held personally accountable for such occurrences because they are legally responsible for the actions of the company secretary.

The tasks of corporate secretaries are not merely restricted to secretarial duties. A common misconception is that this role often involves secretarial duties alone. However, there are many other tasks to be performed by a corporate secretary such as statutory compliance matters, management accounts, and those related to the resignation and appointment of directors.

 

Malaysia Company Secretary Eligibility Requirements

In Malaysia, all candidates to become a company secretary must fulfill all of the requirements specified by the Companies Act 1965. The first criterion is that the person must be at least 18 years old and have a primary place of residence in Malaysia. Another important criterion is that the company secretary must be one of the following people: a chartered accountant who is registered with the Malaysian Institute of Accountants; a chartered secretary who is registered with the Malaysian Institute of Chartered Secretaries and Administrators; a licensed secretary with the Companies Commission of Malaysia (SSM); or a lawyer who has been registered with the Malaysian Bar or any other relevant authorities.

The Companies Act also requires that the candidate must neither be bankrupt nor convicted of any offense which would disqualify the person from serving in the role. A successful company secretary must be a person who has much interest in and knowledge about company governance and law. Most importantly, such a person must be trustworthy because of the important information which must be handled.

Should your company be in need of a suitable person to serve as a company secretary, we at Paul Hype Page & Co will be able to assist you. We will select someone who has fulfilled all of the requirements for the position of company secretary in Malaysia. As you will not have to spend time on selecting a suitable person for the position, you will thus be more able to concentrate on making your business the most profitable it could possibly be.

 

Appointing of a Company Secretary in Malaysia

A company secretary may either be appointed through a resolution of the board of directors or by the shareholders of the company. When a company secretary is appointed, certain details will be required. Such details include the company secretary’s date of appointment, full name, address, and signature. Once all details have been submitted, the company secretary may begin to work for the company in question.

 

How Companies in Malaysia Benefit from Corporate Secretarial Services

Corporate secretarial services ensure that a Malaysian company complies with the country’s corporate laws. Such is the case because such services allow a company to adhere to all legal requirements, thus ensuring that the company avoids committing any illegal or immoral acts. Corporate secretarial services also improve the company’s standard of corporate governance by monitoring the decisions made by directors as well as the directors’ engagements and interactions with the company’s shareholders. These services are also useful for ensuring that all of the company’s records are maintained in a proper manner; this matter is especially vital for smaller businesses which are not necessarily replete with resources.

Corporate secretarial services also provide a company based in Malaysia with assurance that all important tasks are completed appropriately. Every professional company secretary who has been tasked with the handling of all legal and compliance matters of a company must do so in a manner which reflects a high standard of corporate governance and responsibility. Through such services, a company will not have to face any legal problems because a competent company secretary will ensure that all compliance matters will be resolved.

 

Conclusion

Corporate secretarial firms provide many benefits to companies all over Malaysia. Such is the case because through the assistance of a corporate secretary from such a firm, a company can focus on its daily operations in order to increase the revenue of the company. Not only will the selection of an appropriate corporate secretary reduce the overall costs incurred by any company in Malaysia, but it will also allow the company to be able to better manage all legal and compliance requirements of the country. For these reasons, corporate secretarial firms play an important role within the Malaysian corporate scene.

How Corporate Secretarial Firms Benefit Malaysia’s Companies FAQs

What are the details regarding a Malaysian Corporate Secretary’s advisory role?2020-04-29T11:49:07+08:00

A company secretary functions as an advisor to the company with regard to all matters of compliance. The corporate secretary also provides advice regarding the hiring of people to higher positions within the company so as to improve the growth rate of the company in question. 

What must a Corporate Secretary do with Regard to a Company’s Annual General Meetings (AGMs)?2020-04-29T11:48:23+08:00

Every company in Malaysia is legally required to hold an AGM so that important company matters will be discussed among the shareholders and directors. The drafting and handling of the AGM are to be completed by a corporate secretary. For this reason, a corporate secretary ought to attend each of the company’s AGMs. 

Does every company in Malaysia need a Corporate Secretary?2020-04-29T11:47:27+08:00

Malaysia’s company incorporation requirements as specified by the Companies Act 2016 mention that every company in the country is required to employ a corporate secretary who possesses the requisite qualifications for the position. Any company in Malaysia without one is in violation of the law. 

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