Oct 26, 2020
In view of the government’s recent implementation of the Conditional Movement Control Order (CMCO) and Work From Home order specifically for the states of Sabah, Labuan, Kuala Lumpur, Selangor and Putrajaya that affected by the COVID-19 pandemic, the Companies Commission of Malaysia (SSM) has issued a new Practice Directive that is based on the Companies Act, 2016.
Practice Directive 6/2020, that was issued on 22nd October 2020, relates to the Extension of Time for companies to hold annual general meetings for public companies, circulate the financial statements and reports for private companies and for the lodgement of the financial statements and reports to the SSM.
In support of the Government initiatives to ease the economic pressures faced by the corporate community arising from the COVID-19 pandemic, the SSM has agreed for the following:
(a) To grant an extension of time for companies affected by the CMCO to hold an AGM for a period of 90 days;
(b) To grant an extension of time to companies having financial year ending AFTER 31 August 2019 to 31 March 2020 to lodge financial statements and reports for a period of 90 days;
(c) To grant an extension of time to companies having financial year ending AFTER 31 August 2019 to 31 March 2020 to circulate its financial statements and reports for a period of 90 days; and
(d) To waive the application fee of RM100 for each application.
However, companies who wish to apply for an extension of time are still required to lodge an application to the SSM.
This initiative from SSM will end on 15th November 2020. No application can be made after this date.
Please note that the extension of time to SSM can only be made by your company secretary. Therefore, should your company require for an extension of time application for your Audited Financial Statements, please contact us as soon as possible.
Please note that since the extension of time process also requires a directors’ resolution to be passed to give official authority to the company secretary to proceed with it, there will be a minimal fee of RM100 to make sure that all the legalities and requirements for this process are met.