The pandemic, businesses and the companies

The Companies Act 1965 has been in existence until it was replaced in January 2017 by the Companies Act 2016. Although before the CA 2016 was enacted, the CA 1965 were amended over 35 times, the amendments were not holistic. Additionally, the amendments were not in tandem with the various developments that have taken place in developed countries such as the United Kingdom, Australia and Singapore. Nevertheless, the CA 2016 has taken into account the developments that have taken place in those countries as they have been tested and tried. As remarked by the Companies Commission of Malaysia’s Chief Executive Officer, Datuk Zahrah Abd Wahab, the CA 2016 had to replace the CA 1965 as it is vital for companies to remain relevant and competitive. Furthermore it is crucial for the CA 2016 to reflect the developments taking place elsewhere if Malaysia wishes to be an attractive business hub locally, regionally and globally. The enactment of the CA 2016 is a result of the proposals made by the Corporate Law Reform Committee set up by the Companies Commission of Malaysia. However, it took 13 years before the proposals came into effect in the form of the CA 2016. Be that as it may, the concern at hand is whether the CA 2016 was able to withstand the impact Covid-19 pandemic has on businesses and companies.