SSM - Compound Reduction Initiatives
On 11 January 2023, the Ministry of Domestic Trade and Cost of Living (KPDN) through Suruhanjaya Syarikat Malaysia (SSM), announced three compound reduction initiatives to help ease the financial burden of the corporate community.
The first initiative involves reducing the compound by 90% of the original value on companies that have a 'dissolved' status under the Companies Act 1965 (CA1965) and the Companies Act 2016 (CA2016).
The implementation of this initiative aims to help ease the financial burden of directors and companies that have closed.
For the second initiative, SSM introduced a compound reduction of 90% of the original compound value for all common offenses under the CA2016 with immediate effect. The compound reduction will be given to the company after compliance with the failure or fault is taken action by the company. Compound reduction is only given for common offenses under Section 68(1), Section 248(1), Section 258(1), Section 259(1), Section 340(1), Section 30(1) and Section 30(2) of the CA2016. The implementation of this new initiative is expected to help the corporate community to continue doing business in a challenging business environment.
For the third initiative, SSM will continue to reduce the compound by 90% of the original value of the compound for all offenses under the CA1965. This initiative aims to ensure that the data stored in relation to business entities in the SSM registry is up-to-date and also to encourage companies to comply with best governance practices, especially the submission of Financial Statements as well as the latest information at SSM. In addition, it also eases the financial burden of companies towards the recovery of the country's economy in the phase of transition to endemic.
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