Malaysia – Companies May Ask For More Time To Hold Annual General Meetings (“AGMs”) Given Covid-19 Situation.

In a statement from the Companies Commission of Malaysia (“CCM”) on 16 March 2020, the CCM stated that companies may opt to conduct their AGMs electronically or apply for more time to hold the AGMs as a result of the Covid-19 outbreak.

 

Under section 340 of the Companies Act 2016, a public company (including a listed company) is required to hold an AGM in every calendar year, within six months of the company’s financial year end, to transact, amongst others:

 

• the laying of the audited financial statements and the reports of the directors and auditors;

• the election of directors in place of those retiring; and

• the appointment and the fixing of the fee of directors.

   

The CCM acknowledged that companies will find it challenging to hold their AGMs on a timely basis under the current situation, given the Ministry of Health’s advisory to refrain from holding public events after the World Health Organization’s declaration that Covid-19 is a pandemic.

 

The CCM encourages companies to conduct meetings using alternative methods such as electronic meetings at multiple venues as provided under section 327 of the Companies Act 2016.

 

A company may also apply for an extension of time to hold its AGM, based on the following:

 

• the need to comply with the advisory note of the Ministry of Health;

• lack of a quorum due to the outbreak of Covid-19;

• the company needs to take appropriate preventive measures as a result of the outbreak of Covid-19.