Directors have a duty under section 219 of the Companies Act 2016 to notify the company in writing of shares they have interest in, whether in the company or in a related corporation (s219, Companies Act 2016).

This is to comply with section 59 of the Companies Act 2016, which relates to the keeping of the register of directors’ shareholdings, as well as Bursa Malaysia Listing Requirements, if the company is listed.

Directors should note that their interest in shares includes the interest of:

– their spouse, who is not a director of the company

– their children (including adopted child or stepchild), who are not directors of the company.

In other words, the interest in shares held by the director’s spouse or child (who is not a director of the company) will be treated as the directors’ interest in the shares (section 59 (11), Companies Act 2016).

Analyse section 59(11) and section 8 of the Companies Act 2016 when considering a director’s interest in shares.

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This post was first posted on LinkedIn on 6 January 2025.