2019 Good Governance and Integrity Conference

Participants have the opportunity to learn about current hot topics including:

CORPORATE LIABILITY LAW:
Liability Risks for Directors & Senior Officers

Malaysia had entered into a new era on 09 May 2018.  The newly elected Federal Government has shown their willingness and determination to walk the talk in upholding integrity and transparency either in public or private sectors. Where there is the tone from the top, now the people must ready for positive changes by embarking several initiatives in combatting corruption.

In corporate or companies there is a presumption that says, “Doing business without paying bribes is almost impossible”. Hence do the people knows about legal implications that might raise if they indulge themselves in committing corrupt act?

Since the introduction of Malaysian Anti-Corruption Commission Act 2009, only a biological person could be found guilty of any offence under the Act. But for companies, the law doesn’t yet lifting the corporate veil unlike the Companies Act 2016.

Many may not be aware of the significant implications that will take place when Parliament in March 2018 amended the MACC Act 2009 which to include Section 17A that provides Corporate Liability Provision. The new Section is similar to the Bribery Act 2010 in UK which to make company directors / partners / associate persons / senior officers liable for the corrupt / bribery acts by their employees / agents, for making / accepting a facilitation payment etc.

This Provision shall apply to any person and a company / partnership which carries out business in Malaysia.

Therefore if any person found guilty for committing an offence under the MACC Act 2009, the MACC will name and shame corrupt offenders by publishing the names and the corrupt offences committed by them in its website as a stern warning and deterrent  to others not to commit such despicable acts.

In certain company or organization, identifying wrongdoings are often been ignored or the possible complainant is reluctant to blow the whistle and come forward to make a formal complaint. Therefore, the Witness Protection Act 2009 and the Whistleblower Protection Act 2010 provide an avenue which provides statutory rights such as legal protections and remedies that are available for them.

It is very crucial for companies to establish a proper channel and mechanism of whistle-blowing policies as to encourage any person in the company to report any of wrongdoings without fear. A Whistle-blower must also know that any information given shall strictly followed the do’s and don’ts  under Whistleblower Protection Act 2010 as failure to comply  provisions in the Act shall nullify his rights as whistleblowers i.e. adequate protections, remedies when confronted with detrimental action, the risk of  being terminated, denied promotion or other forms discrimination.    

This conference is a must for any corporate leaders / businessmen / senior management officers who are now aware that doing business is not a mere profiteering. Everybody should be educated pertaining to the laws that are enforced as to prepare and equipped themselves with legal knowledge as there is saying in law which says “Ignorant of a law is not an excuse”.

The maxim “Knowledge is Power” is very appropriate here and people should take the extra cautious by getting themselves to be informed of the legal and regulatory changes that has taken place by attending conferences of this nature.

The introduction of the new Corporate Liability Provisions 2018 makes it all the more necessary to be aware and act as a wakeup call to ensure that company directors / partners / associate persons / senior officers are all liable for wrongdoings by employees / agents.