MALAYSIA Law and Practice Contributed by: Dato’ Tan Yee Boon, Stephanie Chan Pik Jia and Joaana Keng Li Xin, David Lai & Tan
6.3 Companies Registry Filings In Malaysia, the primary body responsible for company incorporation, registration, regulation and supervision under CA 2016 is the CCM. Private and public listed companies are required to make various filings with the CCM including, but not limited to, the notification of changes in directors or shareholders, the filing of annual returns, AFS and other disclosures mandated under CA 2016. Filings submitted to the CCM are generally accessible to the public through CCM e-Info. Failure to comply with the statutory filing obliga - tions within the prescribed timeframes may result in enforcement actions by the CCM, including the imposition of fines, compoundable offences or, in more severe cases, legal action against the company and its officers. 7. Audit, Risk and Internal Controls 7.1 Appointment of External Auditors Under Section 271 of CA 2016, a company must appoint an external auditor at each AGM. The appointed external auditor holds office until the conclusion of the next AGM of the company. The person appointed shall not be an auditor of the company if, among other things, he or she, or his or her spouse, is an officer of the company, a partner, an employer or employee of an officer of the company, or a partner or employee of an employee of an officer of the company, or if they have certain shareholding interests that may impair independence. Paragraph 15.21 of the Listing Requirements stipulates that a public listed company must consider, amongst other things, the following when appointing an external auditor:
In addition to the foregoing, public listed com - panies shall provide an interim financial report on a quarterly basis. These reports should be prepared as soon as the figures are approved by the Board and must be announced to Bursa Malaysia not later than two months after the end of each quarter of a financial year. These reporting obligations are designed to ensure transparency, facilitate investor confi - dence and uphold corporate governance stand - ards in Malaysia. 6.2 Disclosure of Corporate Governance Arrangements In accordance with the Listing Requirements and MCCG, public listed companies are required to disclose their corporate governance arrange - ments in their annual reports. Companies shall provide an overview of the application of the principles set out in the MCCG during the finan - cial year. Additionally, companies must submit a detailed corporate governance report to Bur - sa Malaysia, outlining the application of each MCCG practice including explanations for any departures and alternative measures adopted to achieve the intended outcomes. Furthermore, to ensure transparency and ease of access for stakeholders, companies are also required to indicate in their annual report the specific website link or address where the full disclosure can be accessed or downloaded. Beyond compliance, companies are encouraged to view corporate governance disclosure as an opportunity to demonstrate to stakeholders that they have holistic and effective corporate gov - ernance arrangements.
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