Business
July 12, 2004 15:34 PM



44 Percent Of Firms Taken Action For Failing To Submit Annual Report

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KUALA LUMPUR, July 12 (Bernama) - Forty-four percent of registered companies with the Companies Commission of Malaysia (CCM) has been taken action for failing to submit their annual reports as stipulated under the Companies Act 1965.

Domestic Trade and Consumer Affairs Minister, Datuk Mohd Shafie Apdal said the number was in respect of offences such as failing to sumbit their annual report, annual accounts return as well as reports on their annual general meetings.

"Of the total, we have collected fines of RM10 million each year. This shows how unsensitive these company owners are towards stipulated regulations," he told reporters when met after officiating the national conference of the Malaysian Institute of Chartered Secretaries and Administrators (MAICSA) on "Corporate Update 2004 for Directors and Company Secretaries" here Monday.

He said, as of now 658,000 companies had registered with CCM and there are 57,000 cases reported every year.

He said throughout 2003, a total of 900 cases had been brought to court and fined under the Companies Act while up to April this year,
a total of 800 cases were filed in the court.

"We will intensify efforts to ensure that all companies failing to comply with the directives would be dealt with accordingly." he said.

Mohd Shafie said reports required by the authorities were aimed to ensure that the running of a company was on the right track and valid.

"We don't intend to interfere in their activities but merely to ensure that they are on the right path." he said.

The minister said under the Companies Act 1965, any companies failing to prepare and submit their reports on the annual general meetings to the commission were liable to a maximum fine of RM 5,000, while those failing to submit their annual reports would
be fined at a maximum of RM 30,000.

Besides, he said companies which failed to sumbit the annual return would be fined at a maximum of RM 2,000.

He said owner of companies needed to be responsible in complying with regulations stipulated in order to enhance the trust of the society as well as investors towards the quality of service of an organisation.

"Our consumers are expecting good values to build up their trust in investing in a company." he said.

He said the coference and seminar organised by MAICSA would be extended to increase and develop into a more proactive company culture and simultaneously complying with all stipulated regulations.


BERNAMA - 12TH JULY 2004 (MONDAY)


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