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Q：
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What are the shareholders’ rights under the Companies Act 2016?
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A：
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Shareholders of Malaysia companies have several key rights under the Companies Act 2016. These include the right to vote at general meetings, the right to receive dividends if declared by the company, the right to access company statutory information, and the right to take legal action against directors for wrongdoing or breach of duties. Shareholders also have the right to transfer their shares in accordance with the company’s constitution and participate in the distribution of assets in the event of the company’s liquidation.
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Q：
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What obligations do shareholders have when transferring their shares?
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When transferring shares, shareholders must fulfill several obligations to ensure compliance with the company’s rules and the Companies Act 2016. They are required to comply with the company’s constitution, including any pre-emptive rights or restrictions on share transfers. Shareholders must complete and execute the share transfer form properly, pay any applicable stamp duty to the Inland Revenue Board (LHDN), and submit the stamped transfer form and share certificate to the company secretary for registration. Additionally, they must ensure that the transfer adheres to legal and regulatory requirements and any shareholder agreements in place.
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Q：
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How can shareholders protect their rights under the Companies Act 2016?
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Shareholders can protect their rights through various legal avenues. For example, if they face oppression or unfair treatment, they can apply to the court under Section 346 of the Companies Act 2016, seeking remedies such as modifying or cancelling prejudicial resolutions, regulating the company's affairs, requiring the company to purchase their shares or winding up the company.
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Q：
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What are the duties of shareholders?
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Shareholders are responsible for fulfilling their financial obligations up to the value of their shares, voting on important matters at general meetings or via resolutions, and adhering to the company's constitution.
They are also expected to act in the best interest of the company by making decisions that benefit the company and its stakeholders.
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Can shareholders requisite a general meeting?
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Yes, under Section 311 of the Companies Act 2016, shareholders holding at least 10% of the total voting rights (or 5% for companies without share capital) can requisite a general meeting. The requisition must be made in writing, specifying the business to be discussed, and must be signed or authenticated by the shareholders making the request.
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FAQ
