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Compound under Section 7(11)(b) of Companies Act 1965  print
Following a verbal communication with Suruhanjaya Syarikat Malaysia (SSM) relating to compound under Section 7(11)(b) of Companies Act 1965, SSM has informed that the compounds were issued to company secretaries, as they are the officers of the company, and who did not reply to the notices sent under Section 7(11)(a) for the period, January 2015 to December 2016.

The notices under Section 7(11)(a) were sent to seek confirmation whether the companies have held their Annual General Meetings to approve the financial accounts under Sections 165(4) and 169(4) of the Companies Act 1965. A compound under Section 7(11)(b) would be issued if SSM did not receive any reply after six (6) months from the date of the Section 7(11)(a) notice. Currently, SSM is in the process of cleaning up their system in view of the impending online system. The current system will prompt all companies which have defaulted and are not in compliance with the Companies Act.

SSM has acknowledged that there are cases where the notices were not received or sent to the wrong address and they have records of letters sent out by their appointed vendor. SSM has advised that they will consider to waive the compound based on genuine cases.