BDCM-B-Week27-BCL: Can a Company Director in Bankrupt Status?

Question: Can you appoint someone who is in bankrupt status as one of your director in your company?

According to the SSM press release, it is an offence under Section 198(1) Company Act 2016. If you are found guilty, you might get 5 years of prison sentence or RM 1 Million fine, or both in the same time.

Under the Section 198 (1) Company Act 2016, you are not allow to be the company director if you are: -

1. Still in bankruptcy status

2. Convicted of an offence that related to promotion, formation or management in corporation

3. Convicted of an offence that related to bribe, fraud or dishonesty

4. Convicted of an offence of: -

    a. 213: did not comply the duties and responsibilities of the director

    b. 217: did not comply the responsibility of the nominee director

    c. 218: improper use of property, position and etc

    d. 228: non compliance of transactions with directors, substantial shareholders or connected persons 

    e. 539: liabilities of where proper accounts not kept

5. Has been disqualified by the Court under the section 199 

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