Understanding the Legal Requirements and Disqualifications in Malaysia
If you’re considering taking on the role of a Compliance Officer in a Limited Liability Partnership (“LLP”) in Malaysia, it is essential to understand the legal eligibility criteria and disqualifications set out under the Limited Liability Partnerships Act 2012 (“LLP Act 2012”).
Who Can Be a Compliance Officer?
Under Section 27(1) of the LLP Act 2012, an LLP must appoint at least one compliance officer from amongst its partners or persons qualified to act as secretaries under the Companies Act 2016 who:
(a) is a citizen or permanent resident of Malaysia; and
(b) ordinarily resides in Malaysia.
Who is disqualified from Acting as a Compliance Officer?
According to Section 28(1) of the LLP Act 2012, a person shall not act as a compliance officer if-
(a) he is an undischarged bankrupt; or
(b) he is disqualified to act as a director or secretary under the Companies Act 2016.
The relevant provisions under the Companies Act 2016 are:
- Section 198 (Persons disqualified from being a director); and
- Section 238 (Disqualification to act as a secretary).
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Author(s):
Ashley Yeo, Founder
E: ashley@yeoashley.com.my
Nicole Goh, Associate
E: nicole.goh@yeoashley.com.my
Tan Nian Tze, Pupil
E: niantze.tan@yeoashley.com.my
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Hello! This is Yeo Ashley & Partners, a law firm based in Kuala Lumpur, Malaysia. We provide comprehensive services tailored to growing businesses to meet your complex needs.
Our experiences include structuring of company shares for purposes of fundraising and incentivising employees, capital markets, mergers and acquisitions, regulatory compliance, and other shares-related matters, ensuring efficient and compliant processes. Our dedicated team is committed to empowering companies with the tools and guidance needed to navigate these critical areas, enabling them to focus on growth and success with confidence.
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This article is intended to provide general information and does not constitute and/or should be relied on as any legal opinion or professional advice. For more information, you may reach out to Yeo Ashley & Partners, a law firm based in Kuala Lumpur, Malaysia.
