Scenario

Sam came across the news that Companies Bill 2015 has been passed by Dewan Rakyat on 4 April 2016 and subsequent passed by Dewan Negara on 28 April 2016. As the Bill has been passed, Sam thought that the Companies Bill 2015 has already been enforced since 28 April 2016. Is that true?

Mythbusted.

Notwithstanding that Companies Bill 2015 was passed in Parliament, it was not in force until it is approved by Royal Assent on the date to be notified in the Gazette. While it is just a matter of time for the Bill to be approved and gazetted, it is pertinent to be prepared for the major reforms to Malaysian corporate landscape as when the Bill comes into effect, it will introduce a new corporate legal framework which will replace that contained in the existing Companies Act 1965.

So, how much did you know about this Legal Myth?

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