He said the amendments to the Companies Act 2016 and the Limited Liability Partnerships Act 2012 will, among others, introduce new policies that can widen the scope of the provisions on corporate rescue mechanisms.
According to Hasnol, the changes will also improve the current framework on corporate restructuring and insolvency so that Malaysia’s legal framework will be on par with international best practices.
“As we continue to establish Malaysia as the preferred destination in doing business, it is imperative that timely measures are taken to improve the insolvency framework.”
Hasnol, who is also the Companies Commission of Malaysia (SSM) chairman, said this in his keynote address at the launch of the SSM National Conference 2021 virtually today.
He added that there is a need for a more comprehensive legal framework on the rehabilitation of business entities to ensure businesses remain competitive.
“Without a comprehensive legal framework, business entities such as companies and limited liability partnerships run the risk of being wound up when they face financial difficulties even though the business is still viable,” he said.
Hasnol added that the two amendment bills are being reviewed, pending finalisation, by the attorney-general’s chambers for tabling in Parliament.
The national conference today was a one-day virtual event with subject matter experts from SSM sharing their knowledge and experiences with participants.
SSM chief executive officer Nor Azimah Abdul Aziz said the conference, which carries the theme “Governing under New Normal”, also covered topics such as the latest issues involving operations, policies and legislation.
“Our team will also share on the amendments proposed to the ‘Scheme of Arrangement’, ‘Insolvency’ and ‘Corporate Rescue Mechanisms’ under the Companies Act 2016,” she said.
The conference, which attracted 2,000 participants, features four plenary sessions, namely “Governing under New Normal”, “Working with Remote Board”, “Beneficial Ownership Reporting”, and “SSM Talks”.