On 18 December 2019, the Companies Commission of Malaysia (‘CCM’) published a new Question 10 to Part M of the “FAQs on Companies Act 2016 and Transitional Issues” to clarify the requirement for a company to apply for an extension of time to circulate and lodge its financial statements and related reports (collectively ‘financial statements’) under sections 258 and 259 of the Companies Act 2016.
The new Question 10 to Part M clarifies that, if arising from a change of financial year end (‘FYE’) by a company –
- the new deadline for circulation or lodgement of its financial statements is later than the original date, the company will be required to apply to the CCM for an extension of time to circulate or lodge the financial statements; such application is to be made in accordance with Practice Note 3/2018 which requires, inter alia, a private company to submit the application at least seven days before the last day of the original circulation date, and in the case of a public company, at least 30 days before the original last day for holding its annual general meeting; and
- the new circulation due date is not later than the original circulation due date, the company need not apply to the CCM for an extension of time.
The above requirements also apply if a company is unable to lodge its financial statements with the Registrar within, in the case of a private company, 30 days from the from the new circulation due date, and in the case of a public company, within 30 days from the date of its annual general meeting.
The new Question 10 to Part M provides the following example of the circumstances in which the scenario in item 2 above will arise -
FYE: 30 June 2019
Last Day of Original Circulation Due Date: 31 December 2019
FYE: 31 March 2019 (Nine months financial statements)
Last Day of New Circulation Due Date: 30 September 2019
As the new deadline is earlier than the last day of the original circulation due date, the company is not required to apply to the SSM for an extension of time.
Please click here to view Part M of the CCM’s FAQs on Companies Act 2016 and Transitional Issues.