Checklist for Qualifications of a Director in Malaysia
- By : Wong Mei Ying
- Category : Corporate Governance, Directors, Linkedin Post
Prior to appointing a person as a director, the candidate must meet the following requirements to comply with the law and enhance the company’s corporate governance.
- is at least 18 years old;
- is not an undischarged bankrupt, who has not obtained leave of the Official Receiver or Court to be appointed as a director;
- has not been convicted of an offence relating to the promotion, formation or management of a corporation;
- has not been convicted of an offence involving bribery, fraud or dishonesty;
- has not been convicted of an offence under s 213 (duties and responsibilities of directors), s 217 (responsibility of nominee director), s 218 (prohibition against improper use of property and position as a director), s 228 (transactions with directors, substantial shareholders or connected persons) and s 539 (liability where proper accounts not kept) of the Companies Act 2016; and
- has not been disqualified by the Court from acting as a director under s 199 of the Companies Act 2016.
The events which disqualify a person from being a director as set out in items 3 to 6 above apply within 5 years from the date of conviction or if sentenced to imprisonment, from the date of release from prison.
Additional Considerations for Public Companies Listed on Bursa Malaysia:
Bursa Listing Requirements provides that a person must not act as a director of a public company listed on Bursa if the person:
- has been convicted by a court, whether within Malaysia or elsewhere, of an offence in connection with the promotion, formation or management of a corporation;
- has been convicted by the Court of an offence, involving bribery, fraud or dishonesty or where the conviction involved a finding that he acted fraudulently or dishonestly; or
- has been convicted by the Court of an offence under the securities laws or the corporations laws of the PLC’s place of incorporation,
within 5 years from the date of conviction or if sentenced to imprisonment, from the date of release from prison.
#malaysiancorporatelawyer
#directors
#corporategovernance
This post was first posted on LinkedIn on 18 January 2025.
