What is an Exempt Private Company (“EPC”)?
An Exempt Private Company is a private company with no more than 20 shareholders which none of whom is a corporation.
What are its Directors’ responsibilities under Section 244, Section 245, and Section 260 of the Companies Act 2016?
Here are the extracts of the Sections.
Section 244 of the Companies Act 2016:
Preparation of accounting records based on approved accounting standards.
Section 245 of the Companies Act 2016:
Keeping of accounting and other records to sufficiently explain the financial position of the company.
Failure to comply with Section 244 and Section 245 of the Companies Act 2016: Fine not exceeding RM50,000 or imprisonment for a term not exceeding 3 years or both.
For more on Section 244 and Section 245, kindly click here.
Section 260 of the Companies Act 2016:
Lodgement of the certificate relating to its status as Private Exempt Company. The certificate shall state that:
- The company is and has at all relevant times been an exempt private company;
- A duly audited financial statements and reports has been prepared and circulated to its members;
- The company is able to meet its liabilities as and when the liabilities fall due.
Failure to comply with Section 260 of the Companies Act 2016: Fine not exceeding RM20,0000 and RM1,000 for each day which the offense continues.
How can Bizboard help?
Bizboard has a team of qualified and licensed company secretaries as required in the Companies Act 2016 and Companies Commission of Malaysia.
Our highly qualified team has worked throughout various industries and has extensive knowledge to assist the company in secretarial matters.
For more information contact us.
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