If you’re interested in sale and purchase of shares of companies in Malaysia, three significant legal developments are worth noting:

1. Beneficial Ownership Reporting Requirements

The Companies Act 2016 has been amended on 1 April 2024 to introduce beneficial ownership reporting requirements. Companies have a 3 months’ time frame from 1 April 2024 until 30 June 2024 to update and lodge the beneficial ownership information with the Registrar of Companies.

See my previous post for more details on how these new reporting requirements impact M&A transactions.

https://www.linkedin.com/feed/update/urn:li:activity:7201877572186488832/

2. Capital Gains Tax on Disposal of Unlisted Shares

Effective from 1 March 2024, Malaysia has implemented a capital gains tax for the disposal of unlisted shares in companies incorporated in Malaysia.

3. Introduction of Merger Control Regime

In April 2022, the Malaysia Competition Commission initiated a public consultation on proposed amendments to the Competition Act 2010, including the introduction of a merger control regime.

While the exact timeframe is unclear, the Competition Act 2010 is expected to be amended to introduce a merger control regime with the aim of preventing merger that may result in a substantial lessening of competition within any market for goods or services.

#MalaysianCorporateLawyer

#mergersandacquisitions

This post first posted on LinkedIn on 20 June 2024.