Searches to verify existence of companies

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When a buyer acquires a company, a basic but important aspect of due diligence is to ensure the company is properly incorporated under the relevant laws and validly existing.

Other than the usual company search with the Companies Commission of Malaysia (“CCM”) and winding up search with the Malaysian Department of Insolvency, it is also helpful to obtain Attestation of Company Good Standing (“ACGS”) from the CCM.

AGCS is a confirmation that a company has met the following criteria for the issuance of AGCS.

1. The company has been incorporated for at least 18 months from the date of the ACGS;

2. The company has lodged its latest annual return and audited financial statements or certificate relating to an exempt private company;

3. The company is in existence and not in the process of being wound up or stuck off or dissolved;

4. The company is not dormant as per nature of business;

5. The company has a registered address;

6. The company or its directors do not have any outstanding compound; and

7. The company or its directors do not have any pending prosecution case.

Please see links in the comment on how to purchase ACGS via SSM e-info website and sample ACGS.

If you are not able to find ACGS for a company on the SSM e-info website, it probably means it has not met any of the criteria above.

#malaysiancorporatelawyer
#mergersandacquisitions

Originally posted on Linkedin on 3 January 2022.

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