Directors’ Duties in Malaysia

>> Protecting Yourself in Malaysia

  • exercise care and independent judgement
  • act reasonably, with integrity and common- sense. Challenge things when you are uncomfortable, and raise concerns promptly. Seek help and work as a team with your colleagues and other functional specialists to get help and support where needed and find appropriate solutions
  • monitor the financial situation of the company continuously, whether or not you are the finance director. Ensure the right level and regularity of financial information is available, take time to review it and ask questions
  • if you become concerned the company is in, or may face, financial difficulties, take steps to minimise losses and raise the issue immediately so that appropriate and timely advice can be provided. Do not simply keep quiet and hope for the best. Continuing to trade after a company is insolvent may result in a director becoming personally liable for the debts of  the company
  • regularly consider at board meetings items of key importance to your entity e.g. HS&E, export controls, employee issues, compliance and ethics considerations, key contracts. Maintain minutes of directors’ meetings
  • keep in mind the requirements of your employment contract and powers granted under the company’s constitution – do not exceed your powers
  • never sign a contract or licence without understanding what you are signing, being comfortable that you are authorised to sign it
  • consider instituting suitable whistle blowing policy

Latest version updated 4th April 2018

Country Breakdown

31.2

Million

Population

RM

Malaysian Ringgit

Currency

$ 296.4

Trillion

GDP

330,803

km2