Investing your money and time in the establishment of a company in Malaysia is a great idea. Malaysia shows a positive growth of economics and a stable spectrum of politics. This condition is likely conducive to a progressive atmosphere of businesses. However, just like its neighboring countries in the ASEAN, Malaysia has a strict role about the proprietorships or partnerships of a company by foreigners. Foreigners are allowed to set their feet in the business only if they have permanent residency called PR or join the Malaysia My Second Home program. Besides, the foreigners must cooperate with a few domestic parties including at least one licensed company secretary or secretarial firm under the provisions of the Section 139 of the Companies Act 1965. The role of a company secretary in Malaysia is today evolving as a result of complex developments in company legislation and collaborations.
Company Secretary Duties in Business Registration
Those categorized in big companies usually have their own secretarial departments that handle all legal matters on behalf of the companies. It is different from small and medium companies or SMC that usually engage with an external secretary of secretarial firm to deal with all secretarial matters. A company secretary plays a significant role in intermediating between the governmental departments and the foreigner business owners. He/she has heavy responsibilities and great power in the company. This is how the corporate secretary does his/her job for the company.
- Assisting a company incorporation with Suruhanjaya Syarikat Malaysia (SSM) Malaysia
- Sitting as a member of the managerial or secretarial departments of the associated company
- Being present or represented at company meetings
- Conducting both general and board meetings
- Maintaining logs of registers and minutes of company meetings
- Adopting a positive attitude in cooperation with government authorities/ regulatory bodies
- Assisting the directors to ensure the effectiveness of the internal control system for keeping records and registers
- Advising the board of directors so there is no policy in conflict with the interest of the stakeholders
Requirements of a Company Secretary in Malaysia
Due to the abundance of responsibilities and power this position would have, the approval of a company secretary is strictly ruled in the effect 10th September 1992. The requirements include:
- A person of major age (18 years or above)
- Has a professional license released by the Registrar of Companies
- Hold a membership in a professional body or firm prescribed by Minister
- Has a place of resident in Malaysia
A company secretary, in accordance with the Code of Ethics, also has to develop the standard of corporate governance, and to instill the professionalism and effectiveness in performing his/her duties with or without other fellow secretaries. The actions taken must based on some basic principles; they are integrity, responsibility, sincerity and corporate social responsibility. The presence of a company secretary is vital not only by requirement but also for the betterment of the whole running process of a business.