Latest news with #CompaniesAct2016
Borneo Post
2 days ago
- Business
- Borneo Post
SCB seeks court direction over disputed asset sale
SCB is asking the court to determine whether LCIB's liquidators should accept MIE's offer to acquire assets of LCIB and whether they acted in the best interest of all creditors in doing so. KUCHING: Sarawak Cable Berhad (SCB) has filed an application in the High Court of Kuala Lumpur to seek the court's direction over the proposed sale of assets belonging to its former subsidiary Leader Cable Industry Berhad (LCIB). In a filing made through its solicitors Messrs S Ravenesan on May 28, SCB, currently under interim judicial management, is seeking clarity under Sections 461(1) and 486, read together with the Twelfth Schedule of the Companies Act 2016, as well as the inherent jurisdiction of the court. The application centres on a proposed asset sale by LCIB to MIE Industrial Sdn Bhd (MIE), which SCB believes may not serve the best interests of LCIB's creditors or SCB's stakeholders. SCB is asking the court to determine whether LCIB's liquidators should accept MIE's offer to acquire assets of LCIB and whether they acted in the best interest of all creditors in doing so. SCB is also asking the court to determine whether the sale should proceed at all. In the event the court finds that the liquidators did not act in the best interest of creditors, SCB is seeking an order to declare the sale of LCIB's assets to MIE as null and void, including any agreements related to the transaction. The company is also requesting that the cost of the application be paid out of LCIB's assets. On May 7, SCB's board announced plans to take legal action against LCIB's court-appointed liquidators Khoo Siew Kiat and Goh Hua Yang from Messrs Deloitte Restructuring Services PLT. The board had exercised its residual powers, claiming that the disposal of LCIB's assets was prejudicial to SCB and amounted to wilful negligence. Khoo and Goh were appointed as liquidators on May 15, 2024.
New Straits Times
2 days ago
- Business
- New Straits Times
Cape EMS tumbles to record low on auditor resignation
KUALA LUMPUR: Shares of Cape EMS Bhd tumbled 17.02 per cent to a morning low of 19.5 sen in active trades, after the group announced the resignation of its external auditors, Grant Thornton Malaysia PLT, due to resource constraints. The stock opened 2.13 per cent lower at 23 sen from yesterday's close of 23.5 sen before slipping further to 20.5 sen, down 12.77 per cent, by 10.23am. This marks a fresh record low since the company made its Main Market debut on March 10, 2023. The previous low was 21.5 sen, logged on April 9 this year. At the time of writing, a total of 20.95 million shares had changed hands, the counter's busiest trading day in nearly three months. The stock's highest single-day volume this year was 57.96 million shares on March 3. Year-to-date, Cape EMS shares have fallen nearly 49 per cent from 38 sen, extending a broader downtrend following a strong debut last year. The counter had surged 67 per cent on its first day of trading in March 2023, closing at RM1.50 against its initial public offering price of 90 sen. Cape EMS, an electronics manufacturing services provider, said yesterday that its external auditor had tendered its resignation via a written notice dated May 28. The resignation, citing resource constraints, takes effect on June 18 under Section 281(2) of the Companies Act 2016. The company said it will appoint a new audit firm and announce the replacement in due course. It also confirmed there were no other matters requiring shareholder attention. In March, Cape EMS saw the emergence of a new single-largest shareholder, Chung Chee Yang, who acquired an 11.14 per cent stake via open market purchases. Chung is also a substantial shareholder in Cypark Resources Bhd. Earlier in February, the group outlined plans to expand into the renewable energy sector to diversify earnings and support Malaysia's transition to a greener economy.
New Straits Times
3 days ago
- Business
- New Straits Times
PeterLabs seeks court order to halt EGM aimed at board shake-up
KUALA LUMPUR: PeterLabs Holdings Bhd has filed a lawsuit against its non-independent non-executive director Datin Lin Ching Yein and substantial shareholder Bu Yaw Seng, amid an intensifying boardroom tussle. In a filing with Bursa Malaysia, the company said the legal action is intended to block their bid to call for an extraordinary general meeting (EGM), which seeks to remove existing board members and appoint new ones. PeterLabs said it has commenced legal proceedings in the Seremban High Court to declare the May 15 requisition notice invalid, arguing that it is not in the best interest of the company. It has also filed for an interlocutory injunction to restrain Bu and Lin from convening or conducting the proposed EGM, pending a final court ruling. The requisition was submitted under the Companies Act 2016, accompanied by special resolutions to alter the composition of the board. The group said its board, after obtaining legal advice, resolved not to convene the EGM, stating the proposed resolutions were not aligned with the interests of the company or its stakeholders. Yesterday, PeterLabs announced that the group and its subsidiary Thye On Tong Trading Sdn Bhd had initiated legal proceedings against Lin and suspended executive director Datuk Loh Saw Foong. This follows earlier disclosures made on May 13 and May 26, 2025, regarding Loh's suspension over alleged breaches of fiduciary duty. The group is seeking various declaratory reliefs and damages as part of the legal action.
Malaysiakini
22-05-2025
- Business
- Malaysiakini
CCM's response to TI-M on beneficial ownership information
LETTER | The Companies Commission of Malaysia (CCM) refers to the statement by Transparency International Malaysia (TI-M) and its public commentary on social media concerning the limited access of beneficial ownership (BO) information to the public. CCM has introduced a comprehensive beneficial ownership reporting framework under the Companies Act 2016 through the Companies (Amendment) Act 2024, which came into effect on April 1, 2024, and the Limited Liability Partnerships Act 2012 through the Limited Liability Partnerships (Amendment) Act 2024, effective Jan 31, 2025. CCM wishes to clarify that the implementation of the BO framework is guided by Malaysia's commitment to uphold the highest standards of corporate transparency while ensuring compliance with the recommendations of the Financial Action Task Force (FATF) and findings from the National Risk AsseCCMents. The regulatory framework has been designed to balance the need for transparency while ensuring personal data, national interest, and security are fully protected. Both bills proposing amendments to the Acts underwent extensive public consultation processes and were presented to the MPs. The issue of access to BO information was thoroughly debated in Dewan Rakyat and Dewan Negara before both amendments were passed. Under one of the four main policy statements of the Companies (Amendment) Bill 2023 consultation, the scope of strengthening the beneficial ownership reporting framework was proposed. Among others, Subsections 613(1)(aa) dan (ba) of the Companies Act 2016 were introduced to confer powers on the minister to make regulations concerning any matters relating to the access to beneficial ownership information as well as the scheme of compromise or arrangement, corporate voluntary arrangements, judicial management, liquidation, and receivership. This led to the introduction of the Companies (Access to Register and Information Relating to Beneficial Ownership) Regulations 2025, which took effect Jan 10, 2025. Similar provisions were also introduced under the Limited Liability (Amendment) Bill 2024, where BO information disclosure was made mandatory via the Limited Liability (Amendment) Act 2024. To further support the stakeholder engagement, CCM issued a 'Consultative Document on the Proposed Guideline for the Reporting Framework for Beneficial Ownership of Companies (Revised)' on Dec 22, 2023. The consultation period was open to the public until Jan 31, 2024. Subsequently, CCM has also issued a 'Guidelines for the Reporting Framework for Beneficial Ownership of Limited Liability Partnerships (Revised)' on Aug 9, 2024, where the consultation was also opened to the public until Sept 9, 2024. Both documents received feedback from the industry players, legal professionals, enforcement authorities and the public. These initiatives reflect CCM's ongoing commitment to transparency and inclusivity in the development of a robust and effective legal framework for BO disclosure, particularly in matters related to data access by relevant parties. Effective April 1, 2024, CCM mandated the submission of BO information in line with the enforcement of the Companies (Amendment) Act 2024. As of April 30, 2025, a total of 636,342 companies, representing 92.57 percent of the 687,412 companies with existing status, have submitted their BO information. With the issuance of the Companies (Access to Register and Information Relating to Beneficial Ownership) Regulations 2025, which came into effect on Jan 10, 2025, CCM will also issue similar regulations for limited liability partnerships at a later date to be announced. Under these regulations, access to BO data is restricted and granted only to specific categories of persons for legitimate purposes, particularly in the context of anti-money laundering, counter-terrorism financing, and promoting good governance. Access to BO information is limited to the following categories of persons, each identified based on their regulatory, enforcement or compliance-related roles and responsibilities: The beneficial owner; Individuals authorised by the beneficial owner; Enforcement agencies and competent authorities under Section 3(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613), such as Bank Negara Malaysia, police, and MACC; Reporting institutions carrying out anti-money laundering and counter terrorism financing activities as listed under the First Schedule of Act 613; and The Finance Ministry, specifically for functions related to government procurement. Authorised agencies, enforcement bodies and regulated institutions may access BO information for purposes aligned with their statutory functions. These include carrying out investigation activities, ensuring compliance with anti-money laundering and counter terrorism financing requirements and conducting know-your-customer or customer due diligence procedures. This framework supports the integrity of the corporate ecosystem by promoting transparency, facilitating informed decision-making and strengthening confidence in the use of legal entities for legitimate economic activities in Malaysia. This approach reflects practices across Asean, where access to BO information is similarly restricted to competent authorities and selected institutions. In countries such as Singapore, Thailand, Indonesia, the Philippines, and Vietnam, BO data is collected by regulatory bodies such as the Accounting and Corporate Regulatory Authority in Singapore, the Department of Business Development in Thailand, the Securities and Exchange Commission in the Philippines, and other designated authorities. However, this information is not made available to the public. The same applies to Brunei, Cambodia, Lao PDR, and Myanmar, where access to BO information remains limited to enforcement agencies and regulatory authorities. This regional consensus underscores a common emphasis on protecting personal data and preserving national security while enabling access for legitimate regulatory and compliance purposes. It is also important to highlight that there are growing concerns about public access to BO information globally. Several major East Asia economies - including China, Japan and South Korea - have adopted a similar stance by restricting access to BO information, limiting its availability to designated government and regulatory authorities. In Europe, public access to BO registers has also come under increasing scrutiny. Notably, countries such as France, Germany, Austria, and the Netherlands have restricted public access following the European Court of Justice's landmark ruling on Nov 22, 2022 (ECLI:EU:C:2022:912). The court ruled that unrestricted public access constituted a serious infringement on the rights to privacy and personal data protection under the EU Charter of Fundamental Rights. These developments reflect a broader international shift towards re-evaluating the extent of public access to BO data, with an emphasis on striking a balance between corporate transparency, personal data protection, and national security considerations. In addition, CCM wishes to emphasise that the legal obligations relating to the new BO reporting framework are reinforced by stringent enforcement provisions through the Companies (Amendment) Act 2024 and the Limited Liability Partnerships (Amendment) Act 2024. Any person who knowingly or recklessly provides false or misleading information about a beneficial owner to a company or to CCM commits an offence. Upon conviction, the offender may be liable to a fine not exceeding RM3 million, imprisonment for a term not exceeding 10 years, or both. These provisions are designed to uphold the integrity of the BO reporting framework and ensure that the true individuals who ultimately own or control the companies are not concealed. The enforcement mechanism is essential to ensure compliance with international standards, particularly the FATF recommendations, and to support Malaysia's broader efforts in enhancing corporate transparency and combating financial crimes. As Malaysia subscribes to a multi-pronged approach, where CCM is one of the sources to verify BO information of companies and LLPs, persons who can have access to the BO information have a legal duty to report any discrepancies of the information supplied to them with the information or data obtained by or within the knowledge of those persons. Failure to report such a discrepancy within 30 days from the date of the supply may trigger certain penalties under the Companies Act 2016. CCM is strongly committed to promoting transparency, good governance and regulatory integrity. It welcomes engagement with stakeholders, the media and international bodies to continue improving the effectiveness and credibility of Malaysia's corporate regulatory landscape. The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
Malaysian Reserve
21-05-2025
- Business
- Malaysian Reserve
Reneuco seeks court protection as part of debt restructuring effort
RENEUCO Bhd and six of its subsidiaries have applied to the High Court for a restraining order and proposed scheme of arrangement with creditors, as the financially distressed group moves to stabilise its operations and exit its Practice Note 17 (PN17) status. The application, filed on May 20, aims to shield the group from legal actions—including winding-up petitions and litigation – for a period of three months. The moratorium will provide Reneuco time to finalise a debt restructuring plan under Sections 366 and 368 of the Companies Act 2016. Reneuco was classified as a PN17 issuer in February 2024 after its auditors issued a disclaimer of opinion on its FY2023 financial statements, citing significant uncertainties. The proposed scheme of arrangement will need approval from at least 75% of the total value of creditors present and voting at a court-convened meeting. Once approved, the plan will become binding on all scheme creditors. Reneuco stressed that daily operations will continue as usual, and it does not expect material adverse financial or operational impact from the court order. The group said it will engage with contractual counterparties to manage any potential risks arising from the restraining order. –TMR
