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  Understanding Dividends in Malaysia: A Guide for Shareholders and Directors In the corporate landscape of Malaysia, dividends represent one of the primary ways shareholders receive returns on their investments. However, the declaration and distribution of dividends involve complex legal considerations that both directors and shareholders must understand to ensure compliance with the Companies Act 2016 (CA 2016).   What Are Dividends?   Dividends are distributions of a company's profits to its shareholders, typically paid in cash but sometimes issued as additional shares. They represent a tangible return on investment for shareholders and signal a company's financial health and management philosophy.   Legal Framework Governing Dividends in Malaysia   The distribution of dividends in Malaysia is primarily governed by the CA 2016, which introduced significant changes from the previous Companies Act 1965. Understanding these provisions is crucial for co...

Understanding the Legal Landscape: Are Company Secretaries in Malaysia at Risk of Court Charges?    As a company secretary in Malaysia, you play a critical role in ensuring your organization’s compliance with legal and regulatory requirements.   The Role of a Company Secretary in Malaysia Under the Companies Act 2016, a company secretary is responsible for:   - Ensuring statutory compliance (e.g., filing annual returns, maintaining registers).   - Advising directors on legal obligations.   - Acting as the liaison between the company and regulatory bodies.   Failure to fulfill these duties can expose the secretary to legal risks, though direct charges are rare if duties are performed diligently. Legal Risks for Company Secretaries   1. Non-Compliance with Statutory Requirements - Example: Failing to file annual returns or maintain proper records. - Consequence: The secretary could face penalties if the com...