Introduction to the Register of Charges

The Register of Charges is a mandatory record maintained by Malaysian companies to document all charges, particularly fixed and floating, over the company’s assets. This register is essential for providing transparency about the company’s financial obligations and serves as a public record that interested parties, including shareholders and creditors, can inspect.

 

Legal Framework and Maintenance

Under the Companies Act 2016 in Malaysia, companies must keep a Register of Charges at their registered office or another accessible location approved by the directors. The register should detail all charges to which the company’s assets are subject, including the date of creation of the charge, the amount secured by the charge, and details about the charge holder.

 

Public Inspection and Filing

The Register of Charges must be available for inspection by members of the company and the public, ensuring transparency and aiding in informed decision-making by potential creditors or investors. Companies must also lodge a copy of the register with the Companies Commission of Malaysia (SSM), which includes specific details about each charge, enhancing the legal framework’s integrity and protecting stakeholders’ interests.

The maintenance of the Register of Charges is a critical compliance requirement for companies in Malaysia. It helps in the orderly conduct of business affairs and safeguards the rights and interests of creditors and investors by providing clear information on the company’s encumbrances.