Compliance and Legal Due Diligence: An Exercise of Frustration?
- By : Wong Mei Ying
- Category : Due Diligence, Lawyering, Linkedin Post, Mergers and Acquisitions
Due Diligence
Lawyer: Please provide register of members, register of directors, all returns of allotment, all stamped transfer forms…
Representative of Target Company: Please refer to company search from the Companies Commission of Malaysia.
Lawyer: CCM search is not sufficient. Please provide register of members, register of directors, all returns of allotment, all stamped transfer forms…
Why is CCM search not sufficient?
- The Companies Act 2016 of Malaysia provides that the register of members is prima facie evidence of the information stated therein, and hence prima facie evidence of shareholders and their shareholding in a company.
- The Companies Act 2016 mandates that companies maintain accurate records such as the register of members and register of directors. These documents are necessary to verify compliance with legal requirements.
- There are procedures that need to be complied with under the Companies Act 2016 of Malaysia in relation to allotment and transfer of shares. One of the reasons for requesting for statutory records instead of relying on CCM search is to determine whether these procedural legal requirements have been complied with.
Having experienced legal counsel to clearly outline the requirements will expedite the due diligence process and ensure all parties understand what is required and why it is essential.
This post was first posted on LinkedIn on 26 March 2025.
