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

32President’s StatementSSM had established a Technical Committee under the CPCF,which consists of the CPCF members and representativesfrom various divisions of the SSM. The CPCF TechnicalCommittee aims to promote, encourage and support theexchange of views and information on matters and issues inareas affecting the company secretarial and administrationmatters and to set and promulgate the highest standards orbest practices in the profession, especially towards the practiceof good corporate governance. The CPCF TechnicalCommittee would report to the CPCF on matters discussedand resolved from time to time and to refer any unresolvedissues to the CPCF for deliberation. The Technical Committeealso discuss and resolve operational and technical issues facedby company secretaries and SSM with the objectives offacilitating and further enhancing the business delivery system.The Securities Commission (SC) continues to introducemeasures and development initiatives to enhance theframework for the enforcement of securities law to allow formore effective action to be taken against corporateimpropriety. The Institute maintains an on-going consultativerelationship with the SC to discuss practical issues relating tothe existing regulations and proposals for change with the viewto provide more facilitative environment for raising of capital.The SC has also invited the Institute to submit issuespertaining to the capital market that the Institute may wish theSC to consider as part of its submission to the Ministry ofFinance for the Federal Budget 2013.The Audit Oversight Board (AOB) that was establishedpursuant to the Securities Commission Amendment Act 2010has taken effect on April 1, 2010. The AOB assists the SecuritiesCommission Malaysia in regulating auditors of public-interestentities (PIE) to promote investor protection and reliability ofaudited financial statements of PIEs. The Institute hasparticipated in various dialogues organised by AOB.The Institute also participates actively in the consultativeprocess of Bursa Malaysia relating to changes in the ListingRequirements. In addition, the Institute is also involved in thevarious focus groups of Bursa Malaysia in relation to newmeasures or products being introduced by Bursa Malaysia.insolvencyThe Insolvency Practice Committee consists of representatives from all interest groups including the Institute’s members inpractice, the Bar Council, the Association of Banks Malaysia, the Companies Commission of Malaysia and the Malaysian Departmentof Insolvency (MDI). The Committee serves as a useful forum for the discussion of practical issues arising from insolvencymanagement and administration.During the year, the Committee together with MIA’sInsolvency Practice Sub-Committee had arranged to makerepresentations to the relevant authorities to discuss issuesrelated to the implications of the Housing Development(Control and Licensing) (Amendment) Act 2012 on insolvencypractitioners. The Housing Development (Control andLicensing) Act 1966 was proposed to be amended by theMinistry of Housing and Local Government and theamendments were passed in the Parliament in December 2011.The amended Act extends the interpretation of a ‘housingdeveloper’ to include a person or body appointed by a court ofcompetent jurisdiction to be the liquidator or provisionalliquidator for the housing developer in a case where thehousing developer is under liquidation.The Committee has deferred the development of InsolvencyGuidance Notes on the Eligibility of Auditors to Act asLiquidator of Audit Clients, Effective Date of Cessation ofOffice of Liquidator under the Companies Act, 1965, Vacationof Office of Liquidator due to Death and Requirements onLodgement of Form 75, Liquidator’s Account of Receipts andPayments and Statement of the Position of Winding up due toresource constraint.The IPC as a special interest group, continues to be a memberof INSOL International, an international organisation ofinsolvency professionals. The INSOL International has issued23 Technical Series since January 2007. The affiliation withINSOL International provides opportunities for membersengaged in insolvency practice to keep up to date with theglobal changes and developments in insolvency law andpractices. The INSOL journal and technical series serves as auseful source of reference on significant insolvency issues anddevelopments.