SSM to wind up 50% of dormant firms

KUALA LUMPUR: The Companies Commission of Malaysia (SSM) aims to wind up at least 50% of the 67,767 dormant companies incorporated between 2012 and 2014, said its chief executive officer Datuk Zahrah Abd Wahab Fenner.

She said the commission was offering a moratorium period of between Oct 1 and Dec 31 for applications to cancel the registration of company names and incentives to reduce compounds.

“We urge dormant companies to use the opportunity during the three-month moratorium period to cancel the registration and take advantage of the reduction of up to 80% for the compound offered,” she said after officiating at the National Insolvency Conference 2017 today.

The one-day conference, organised by SSM, attracted 260 participants, comprising lawyers, bank officers and insolvency advisers.

It aims to share information on the new provisions relating to insolvency in the 2016 Act.

Zahrah said SSM had also introduced new guidelines to facilitate the application to wind up the firms.

She said the applicants now did not have to issue a shareholders’ resolution to prove that all shareholders had no objection to the application.

“SSM is offering up to 80% discount for the compound incentives during the period, which is from RM1,000 to a flat rate of RM100, for every company or director’s fault.

“With the implementation of this moratorium, the application process is expected to be faster, from about nine months and sometimes reaching two years, to 60 days,” she said. – Bernama