The Corporate Law Reform Programme of the Companies Commission of Malaysia (SSM) began in December 2003 when the review of the Companies Act 1965 was initiated as part of SSM strategic direction in facilitating the development of a conducive and dynamic business and regulatory environment for this country.
SSM established the Corporate Law Reform Committee (CLRC) to spearhead the review of the Companies Act 1965 with the following objectives:
- to create a legal and regulatory structure that will facilitate business; and
- to promote accountability and protection of corporate directors and members taking into account the interest of other stakeholders, in line with international standards.
At the same time, when reviewing and recommending changes to the Companies Act 1965, the CLRC was to take into consideration the following factors:
- Modernising the law by taking into account the advances made in Information and Communication Technology (ICT);
- Reducing the costs of compliance;
- Reducing duplications and conflicts that exist between the various corporate regulatory bodies;
- Simplifying the existing operational processes of a company; and
- Simplifying the current legislative language as used in the Act.