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The government also introduced various measures to soften the impact of the crisis.
Amongst the measures taken was the establishment of the Pengurusan Danaharta
Nasional Bhd (Danaharta), a wholly government-owned assets management
company for the purpose of acquiring non-performing loans from financial
institutions. In order to achieve its objectives, the Pengurusan Danaharta Nasional
Berhad Act 1998 (the Danaharta Act 1998) was passed outlining the framework and
existence of Danaharta, together with special powers of acquisition and disposal of
assets.
In 2003, the Companies Commission of Malaysia established the Corporate Law
Reform Committee (CLRC) with the purpose of reviewing the current corporate law
in order to ensure that the law conforms to the international standard of corporate
governance. The CLRC undertook the task of reviewing the current Companies Act
1965 in 2004. Among the areas reviewed were directors‟ duties, corporate
insolvency and capital maintenance rule and share capital.
A consultative document was published in 2006 on reforming directors‟ roles and
duties. The consultative document took the view that in considering directors‟ roles
and duties, the interests of other stakeholders should be taken into consideration. 213
The CLRC did not directly propose that directors should directly consider the
interests of creditors in insolvent situations and considered the relationship between a
company and its creditors is sufficiently dealt by the existing law. 214 The committee
also recognized the need to introduce the business judgment rule in the company
legislation, a suggestion which has been adopted in the latest amendment to the
Companies Act in 2007. 215 The view sanctioned by the committee on the need to
213 Malaysia Corporate Law Reform Committee “A Consultative Document on Clarifying and
Reformulating the Directors‟ Role Duties, (2006) at [4.4]. [CLRC Clarifying and Reformulating
the Directors‟ Role Duties]."
214 Ibid, at [4.5-4.9].
215 See section 132 of the Malaysian Companies Act 1965 (Companies (Amendment) Act 2007 Act
A1299 in force from 15.8.2007.
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