Contemporary Business

Background of SSM

CORPORATE LAW REFORM COMMITTEE (CLRC)

The Companies Commission of Malaysia has taken the initiative to review Malaysian corporate law under its Corporate Law Reform Programme. To ensure that the reform programme will be conducted effectively and objectively, CCM has established a committee called the Corporate Law Reform Committee (CLRC) pursuant to sections 17 and 19 of the Companies Commission of Malaysia Act 2001.

The establishment of the Corporate Law Reform Committee (CLRC) on 17 December 2003 forms an integral part of the strategic direction of the Companies Commission Malaysia towards providing a regulatory framework which is conducive for companies and businesses to operate.

The Companies Commission recognises the need to review the Companies Act 1965 to reflect the current and future needs of the business environment. Accordingly, the CLRC has been established to undertake a fundamental review of the current legislative policies on corporate law in order to propose amendments that are necessary for corporate and business activities to function in a cost effective, consistent, transparent and competitive business environment in line with international standards of good corporate governance. Companies Commission of Malaysia (SSM ) is a statutory body responsible for regulating companies and businesses in Malaysia and is an agency under the Ministry of Domestic Trade , Cooperatives and Consumerism Malaysia . SSM formed from the merger of the Office of the Registrar of Companies ( ROC ) and the Registrar of Business ( ROB ) on 16 April 2002 under the Companies Commission Act 2001 [ Act 614 ] .

Any subsidiary legislation made under the Acts specified above such as : -

• Companies Regulations 1966
• Business Registration Rules 1957

Objectives of SSM

The objectives of the corporate law reform programmer in Malaysia are:

• the creation of a legal and regulatory structure that will facilitate business
  
• the promotion of accountability and protection of corporate directors and members taking into account the interest of other stakeholders, in line with international standards.
  

Functions of the SSM

• To encourage and promote proper conduct amongst directors, secretaries, managers and other officers of a corporation, self-regulated corporations, companies, businesses, industry groups and professional bodies in the corporate sector in order to ensure that all corporate and business activities are conducted in accordance with established norms of good corporate governance
  
• To enhance and promote the supply of corporate information under any of the laws administrated, and create and develop a facility whereby any corporate information received by the Companies Commission may be analyzed and supplied to the public
  
• To carry out all such activities and do all such things as are necessary or advantageous and proper for the administration of the Companies Commission or for such other purpose as may be directed by the Minister.

Procedures to register Limited Liability Partnership

An LLP can be registered by way of an application made to the Registrar by providing the    following information:

• Registration of LLP

• proposed name of the LLP
• nature of business
• address of registered office
• name and details of partners
• name and details of compliance office
• approval letter (in cases of professional practice)

• Conversion into LLP

Who can convert:

A conventional partnership registered under the Registration of businesses Act      1956 or any partnership established by two or more persons for the purpose of professional practice. Private companies incorporated under the Companies Act 1956.

• Conversion from conventional partnership to LLP

Eligibility criteria:

• Same partners and no one else.
• At the date of application the conventional partnership solvent.
• In cases of professional practice, an approval letter from the governing body.

• Conversion from private company to LLP

Eligibility criteria:

• Same shareholders and no one else.
• There is no subsisting security interests in its assets.
• At the date of application, the private company is solvent.
• All outstanding statutory fees to government, agencies has been settled.
• Advertisement has been placed in a widely circulated newspaper and the Gazette.
• All creditors agreed to the conversion.

Conclusion

In my point of view, Suruhanjaya Syarikat Malaysia (SSM) is a useful for who involves in a business. Any interested people can apply to Registrar of Companies by submitting the application letter together with any relevant documents. This visit for Suruhanjaya Syarikat Malaysia (SSM) will be useful for us in future. If we want to do business Suruhanjaya Syarikat Malaysia (SSM) will help us in a lot ways. Finally, we also know more information about Suruhanjaya Syarikat Malaysia (SSM) through our visit.