On 4thApril 2013, we received 1 question from Mr Alfred Low:-
I need an opinion on Companies Act 1965, section 167 which states companies are required to keep accounting records in Malaysia. How does this work for companies which outsource their financial services outside Malaysia? Is this action enforceable?
CompaniesAct 1967 is applicable to all types of companies in Malaysia.
Section 167(4) stipulates thatthe accounting and other records of operations outside Malaysia may be kept bythe company at a place outside Malaysia; however the original accounting andother records shall be sent and kept in Malaysia for inspection by thedirectors and the Registrar.
Thus, the companies who outsourcetheir financial services outside Malaysia will be required to send theiroriginal records back to Malaysia and be kept at their business office orregistered office in Malaysia for inspection.
Please note that noncompliance of this section 167 by the company or the officer of the companywill be liable for imprisonment of six (6) months or five thousand ringgit(RM5,000.00) or both.