How to appoint new director in Malaysia
This article will illustrate how to appoint new director to the Sdn Bhd Company.
In order to register company in Malaysia, it is required to have at least one director and at least one shareholder, although they can be the same person.
Once the sdn bhd company is incorporated, new directors can then be appointed either in replacing the existing one or in addition to the existing ones.
How to Appoint New Director in Malaysia
To appoint new director for the company in Malaysia, you must notify your company secretary.
The company secretary will prepare the document (Section 201: Declaration by a person before appointment as director, or by a promoter before incorporation of corporation) for the new director to make his declaration before his appointment as director to the company.
The company secretary will then prepare the board resolution to get the approval from the board of directors to appoint new company director for the company.
What information is required?
The process of appointing a new company director will require that they submit some information that will be listed with Suruhanjaya Syarikat Malaysia (SSM) in connection with the company.
The information required includes:
- Date of their appointment
- Full name
- Nationality
- Date of birth
- Occupation if any held
- Service address
- Residential address
- Email address
- Contact number
Service address
A service address could be any physical address, a director may use a non-residential or residential address as his service address.
Or a director can choose an email address as his service address instead of using any physical address, as this is allowed under the Companies Act 2016.
The service address is needed for the purpose of receiving official individual mail addressing to a director.
Restrictions on who can be a director
There are a few basic rules for someone to become a company director.
They must be at least aged 16 years old.
They must also not be a disqualified director from another company or an undischarged bankrupt, which a person who is still going through the bankruptcy system and is waiting for an order of discharge from the court.
The director may not be someone who is also an auditor of the company or anyone who is excluded under the Company’s Constitution in any way.
Directors can also be shareholders although there is no obligation for a director to hold shares in the company.
Conclusion
Adding a new director to your company records is a relatively simple process that can help bring new life into a business and expand the skills within the company.
The process can only be done via the company secretary and your company secretary will do the work for you and to ensure all information is submitted correctly.
As such, appoint new director can be as easier as just signing few documents & done.
