300,000 firms cited

Headline: 300,000 firms cited
Publication: The Star
Date of publication: June 14, 2011
Section heading: Nation
Page number: 006

KUALA LUMPUR: Over 300,000 companies and businesses were booked in 2009 for committing various offences under the Companies Act and the Registration of Businesses Act.

This was disclosed in the Companies Commission of Malaysia report for that year, which stated that nearly 119,500 companies and about 180,720 businesses were issued compound notices after inspections were carried out at their premises and over the CCM database.

The main offence among businesses was continuing operations after their registration had expired.

About 88,150 businesses were guilty of this.

Another 1,715 businesses were cited for not being registered.

At the same time, more than 47,350 companies failed to table their profit and loss accounts at their annual general meeting within the stipulated time.

Nearly 37,000 companies failed to lodge their annual returns with the registrar and 35,150 companies failed to hold an AGM.

Meanwhile, CCM chief executive officer Datuk Azmi Ariffin said more companies were complying with CCM’s Practice Note, which requires all companies to lodge their annual
returns together with audited accounts.

“When the Practice Note was introduced in June 2008, the compliance rate fell from 92% in 2007 to 80% in 2008.

“With a combination of enforcement, education and awareness about the Practice Note, we have seen a gradual increase in compliance to 84% in 2009 and 87% in 2010,” he said
when opening the inaugural CCM National Conference at Menara SSM here yesterday.

He added that submitting financial reports helped as companies or investors would be able to access these records before making business decisions.

CCM corporate development and policy division director Norazimah Abdul Aziz said that the drop in compliance in 2008 was because companies did not understand the need to keep
their books in order.

“Some would rather pay the compound fine than deal with the work of keeping their accounts,” she said.