Accounting standards for financial instruments This accounting standard is by far the most contentious, complicated and still in the process of updating and change, among all the other standards. As frightful as it may sound, the Malaysian Accounting Standards Board (“MASB”) has announced the accounting standards relating to financial instruments shall be implemented and applicable…
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Goods and Services Tax in Malaysia At the end of 2009, Malaysia’s prime minister Datuk Seri Najib Tun Razak announced that a bill on the proposed introduction of Goods and Services Tax (“GST”) will be tabled at this year’s Budget 2010. Some indicated expectations about GST are as followed: GST is to be implemented from…
Recently, Malaysia’s Budget 2010 has created quite a bit of negative reactions within the public, especially the property people. What has caused this reaction? Prior to 1 April 2007, Real Property Gains Tax (RPGT) has been in effect for quite some time already, and during that time, the RPGT rates are as follows: Duration between…
Corporate Governance – Committees Nominating Committee The nominating committee is responsible to identify, nominate and orientate new directors, both executive and non-executive. The main reason for delegating such responsibility is to ensure recruitment matters relating to directors are addressed in detail, allowing the Board to spend time on strategic matters. It is, however, the Board’s…
Corporate Governance The Audit Committee The third part of our Corporate Governance series, we will be covering the functions and responsibilities of an Audit Committee within an organization, which is fundamentally about accountability and good governance. Pursuant to Paragraph 15.10 of the Listing Requirements, all listed companies in Malaysia must have an Audit Committee. This…
Stemming from my earlier write up on corporate governance, this article is the second part of the series which looks at the factors and qualities that create good corporate governance and its best practices. For this article, we shall address the area of Board of Directors, since they are the driving force of every organization….
Corporate Governance Corporate governance is defined as a set of policies and procedures affecting the way a corporation is administered. These policies and procedures are mechanisms required to ensure accountability of certain individuals who have great impact on the organization’s direction and goals. The next question will be “Who are these individuals?” they are none…
Few days ago, I received an inquiry from a few working girls who wanted to venture into some business. They wanted to find out about information about setting up a private limited company or Sdn Bhd. One very interesting question from them was “Why do we need a Company Secretary?” From that moment on, I…
Since a company is a legal entity by itself, its shareholders are required to appoint directors, officers who are entrusted with the power and authority to make decisions for the running of the company and manage the company’s affairs. For many private limited companies, the shareholders of the company are often involved in the daily…
When a listed company has cash and short term investments, making up at least 70% of its consolidated assets (this condition is referred to as “Cash Criterion”), it has to notify Bursa Malaysia immediately. Bursa will determine if this company is considered a “Cash Company”. In most cases, the listed company will need to determine…
