Annual Report 2011 - The Malaysian Institute Of Certified Public ...

President’s Statement31company and securities lawThe Companies Commission of Malaysia (SSM) has issued the second consultative document on the proposed framework forLimited Liability Partnership (LLP) in Malaysia for comment in April 2008. The consultative document incorporates deliberation onthe concept of the proposed LLP towards a more comprehensive framework. The proposal was intended to complement theexisting forms of business vehicles by providing a wider choice for business to structure their operations which would make themmore comprehensive regionally and internationally. The proposed LLP will offer a combination of limited liability for its membersand the flexibility of the partnership arrangement for the internal arrangement for its business. The SSM has incorporated thecomments received during the consultative period and has drafted the Limited Liability Partnership Bill in March 2009. The Institutesubmitted its view on the draft LLP Bill to SSM and also participated in the Roundtable Discussions on LLP organised by SSM. TheLLP Bill was tabled to Parliament for its first reading on June 14, 2011. The Institute was invited by the SSM to attend consultationsessions on “Tax Treatment for LLP in Malaysia” to discuss and recommend suitable tax treatments for LLP. The Institute and CTIMhas jointly submitted a memorandum on the proposed tax treatments for LLP in Malaysia to the SSM. The LLP Act 2012 was passedin Parliament on December 21, 2011 and gazetted on February 9, 2012. The Act was expected to be implemented by end of June2012.Since year 2008, the SSM has issued thirteen Practice Notes to assist stakeholders in understanding the application of theCompanies Act, 1965, as follows:Practice NoteTitle1/2008 Requirements relating to the Lodgement of Annual Return of Companies2/2008 Change of Financial Year3/2009 Confirmation on the Latest Shareholding Structure/Composition ofa Company Issued by a Company Secretary4/2009 Notification in relation to the Identification of the Chargees for the Executionof Form 42B for the Discharge of Charge under the Companies Act 19655/2009 The Filing of Objections pursuant to a Claim of Amount Due and Owing againsta Company Undergoing a Striking-off Process6/2010 Guidelines for the Application to Strike-off a Company which is being Wound-up7/2010 Guidelines for Auditors to Inform Registrar prior to Cessation of Office underSection 172A of the Companies Act, 19658/2010 Explanation on the Application of Thresholds Provided for under Section 132C(1B)of the Companies Act, 19659/2010 Application for extension of time:• to convene the annual general meeting of a company; and• to lay the profit and loss accounts of a company10/2011 Lodgement of Annual Return where Annual General Meeting cannot be Convened11/2011 Clarification on whether a Society can be a Member of a Company12/2011 Compliance Programme to Encourage Timely Submission of Annual Returnsand Audited Financial Statements13/2011 Circumstances and Procedures for Rectification of Documents Lodged andRegistered with Companies Commission of MalaysiaThe Corporate Practice Consultative Forum (CPCF) was established by the SSM, with the aim of providing a platform forprofessional bodies to provide feedback, views and proposals on the practices, regulations and programmes implemented by SSMpursuant to the Companies Act 1965. The Forum comprises six professional bodies, including the Institute. During the year underreview, the representatives from the Institute had attended two CPCF meetings on September 29, 2011 and April 5, 2012.