TOPIC 4 STATUTORY BOOK / REGISTER
COMPANY SECRETARIAL PRACTICE, Universiti Utara Malaysia (UUM)
Statutory book refers to any type of records that a company is required to keep by law. This can include registers, accounts, accounting records, and any other records that contain information about the company.
Type of books/registers
The notice of registration issued by the Companies Commission of Malaysia (CCM)
The company's constitution, if it has one
Any certificates given under the Companies Act 2016 or previous written law
Registers, books, records, and documents required by law
Minutes of meetings of members and resolutions made by the members
Minutes of meetings and resolutions of the Board of Directors and committees
Copies of written communications to all members or all holders of the same class of shares
Copies of financial statements and group financial statements
Accounting records required by the CCM
Copies of all documents related to creating or evidencing charges
Any other documents required by the CCM.
Some of these documents can be kept at a location other than the registered office, but the CCM must be informed of this.
Directors’ Service Contract
why need Statutory book
to keep accurate records of their financial and other business dealings
provide a clear and complete record of a company's transaction
are used to ensure transparency and accountability
Transparency refers to the openness of information and processes, making it possible for stakeholders to understand what is happening within the organization.
Accountability refers to the responsibility that individuals or organizations have for their actions and the consequences of those actions.
used by regulators and auditors to monitor the company's compliance with relevant laws
Registered office and Office hours
name and number of the company must be displayed:
- at the registered office of the company,
- at every location where the company conducts business, and
- on any official documents or publications produced by the company, including its electronic medium such as its website.
This is to ensure that the company is easily identifiable to the public and its stakeholders.
Registered office must be in Malaysia and office to be open during ordinary business hours
Change of registered office to be notified to Registrar within 14 days
Forms of documents
A company is required to keep its documents and records in either:
- a written form or
- in any other form or manner, such as electronic, that allows the documents and information to be easily accessible and able to be reproduced into written form.
The company must take reasonable steps to prevent these documents and records from being falsified.
If the company finds out that a document or record has been falsified, it must immediately inform the CCM, who can then direct the company to either correct the document or take any other appropriate actions.
Execution of documents & Common Seal
The use of a common seal (a type of company stamp) is now optional for a company.
If the company decides to use a common seal,
If the company decides not to use a common seal, a document can be considered valid:
if it is signed by at least two authorized officers, one of whom must be a director and the other can be another director, the secretary, or any person approved by the board.
If the company only has one director, the document can be considered valid if it is signed by the director in the presence of a witness.
it must have the company name and registration number engraved on it in clear and readable characters.
Inspection of documents and records
A company is required to keep certain documents and records, and make them available for inspection.
Any person who is entitled to inspect these documents and records can do so at the company's registered office or another specified location.
They are also allowed to make copies or take extracts from these documents and records.
"take extracts" means to make a selection of information from a larger document or record.
Members’ rights
to access / inspect / make a copy / take extracts of statutory registers that are made available under the Act
Type of books/registers
Register of members (Sec 50)
Register of directors, managers and secretaries (Sec 57)
Register of directors’ shareholdings, etc. (Sec 59)
Register of debenture holders and copies of trust deed (Sec 60)
Register of options to take up unissued shares in a company (Sec 129)
Register of substantial shareholders (Sec 144)
Records of resolutions and meetings (Sec 341)
Registration of charges (Sec 352)
Accounting Record (Sec 245)
Register of members
Every company in Malaysia is required to keep a record of its members.
This record must include information such as the member's name, address, nationality, usual place of residence, and information about the shares they hold (no. of shares, cert no., amount paid/allotment of shares).
If the company has more than 50 members, it must also keep an index of these members.
The register of members must be kept at the company's registered office or at another office within Malaysia.
Members and non-members can inspect the register
The company must inform the Companies Commission of Malaysia (CCM) of any changes to the register within 14 days.
The register may be closed for a limited time each year after giving notice to the CCM.
For listed companies, the securities are held in a Central Depository System operated by Malaysian Central Depository Sdn Bhd and to become a member, one must open a securities account with this system.
Members of listed companies appear in the Record of Depositor.
If member is a corporation - the corp. name/place of incorp./establishment or origin/registration no./ registered office and any other relevant info.
not less than 14 days notice to CCM, but shall not more than 30 days in aggregate in any calendar year.
member – without charge; and
any person - RM10/inspection
Member/non member may request a copy of info (limited to name, address, no share, amount paid on shares)
and will be provided within 21 days of the request with the payment of RM10 or such lesser sum as may be determined by the co. for every 100 words
CDS) is like a digital bank for stocks and bonds. It keeps track of who owns the securities in a secure and efficient way. For listed companies, their securities (such as stocks) are held in a CDS run by Malaysian Central Depository Sdn Bhd (MCDS). This means that when someone buys or sells shares in the company, the transaction happens through the CDS, making it easier to manage the ownership of the securities.
ROD shows who owns the securities (stocks or bonds) of the company and how many securities each member holds.