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Duties & Responsibilities of Directors in Malaysia

According to the Companies Act of Malaysia, a company is to have at least one director if it is a private company or at least two directors if it is a public company.

For this reason, the director of a company in Malaysia is barred from resigning or vacating the position if doing so would reduce the number of directors of the company to a number below the required minimum. Should the director attempt to do so, this attempted resignation or absence will not take effect unless a person is appointed to replace the director who is leaving.

The director also has to be

  • a natural person

  • at least 18 years or older

  • an ordinarily resident of Malaysia – have a primary residential location in Malaysia.

Every company is also allowed to specify any additional requirements [specific academic or work qualifications] to be fulfilled for one to become a director of that company.

🧑🏻‍💼 Over the years, we have had directors come to us for professional corporate assistance and financial advice to improve their company’s financial status. One of the thing that a lot of people don’t realise is directors not only have to make all the big business and operational decisions for the company – but a director’s responsibilities also include:

📝 Make sure registers and statutory books are kept updated

📝 Ensure proper accounting records are kept

📝 Table accounts, balance sheet and directors’ report at AGM

📝 Ensure that payment of dividends is from profits only

To be honest, it’s a rather long list and it can get pretty overwhelming to handle everything alone. That is why engaging in professional services is important to help ensure that directors have good understanding of their roles and responsibilities towards the company. Contact us via https://wa.me/60122192492 and let us help you 📲

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