Who is fit to be a director?

Company Law

The Companies Commission of Malaysia has brought charges against directors of companies in separate cases for acting as directors while being undischarged bankrupts.*

The legislature does not prescribe the qualities and experience a person must possess before he is fit for appointment. However, the legislature does prescribe the categories of persons who are disqualified from holding office as a director or be concerned with or take part in the management of a company.

The disqualified categories under section 198 of the Companies Act 2016 are:
• Undischarged bankrupt
• Person who has been convicted of an offence relating to the promotion, formation or management of a corporation
• Person who has been convicted of an offence involving bribery, fraud or dishonesty
• Person who has been convicted of an offence relating to breach of directors’ duties and responsibilities under the Companies Act 2016
• Person who has been disqualified by the Court from acting as a director or promoter

*See press release by CCM

https://www.ssm.com.my/Lists/Press%20Release/DispForm.aspx?ID=212&ContentTypeId=0x010098952881AC48D34C9D9967E0232CDB0B

#malaysiancorporatelawyer
#companieslaw
#companiesact2016
#directors

This post was first posted on Linkedin on 22 April 2021.

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