|Will the MIA investigate the allegations against member no 2190, Chin Kwai Fatt, seen here unveiling a logo?|
Chin Kwai Fatt attested to the fact that PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), in the year 2008 appeared to have been able to meet its liabilities as and when they fall due.
Here, Suruhanjaya Syarikat Malaysia (SSM) defines what it means by liabilities under the Companies Commission of Malaysia Act 2001:
"liabilities" means liabilities, debts, charges, duties and obligations of every description whether present or future, actual or contingent, and whether payable or to be observed or performed in Malaysia or elsewhere;
Did Chin Kwai Fatt disclose the contingent liabilities that PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) holds, arising from several lawsuits it faces in the courts, amounting to several hundred million Ringgit?
Did Chin Kwai Fatt, as the Director of PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), ensure that the company was able to pass the cash flow solvency test (an impossibility since the company ceased operations the following year) and the balance sheet solvency test, so that his declaration was valid?
Can PricewaterhouseCoopers Consulting Sdn Bhd (464379-U), which has ceased operations (no more cash flow) and does not hold assets that are enough to meet its contingent liabilities (balance sheet solvency), meet its liabilities as defined by the Companies Commission of Malaysia (SSM)?
The MIA has issued a circular to all its members, regarding Practice Note 1/2008 issued by the SSM.
|18 Jun 2008|
Company Law - Circular 37/2008
The lodgement of the annual return of a company shall be in accordance with the Eighth Schedule to the CA 1965 and be accompanied by such copies of documents as are required or such certificates or other particulars as prescribed in Part II of that Schedule.
Part II of the Eighth Schedule requires the following attachment:
Part II of the Eighth Schedule requires the following attachment in the case of an exempt private company which is solvent:
In this regard, the practice adopted by some companies which lodge annual returns without attaching the audited accounts is not in accordance with the requirements of the CA 1965 as well as the principles of good corporate governance. Therefore, the lodgement of annual returns without the attachment as prescribed in Part II of Eighth Schedule as mentioned above will be considered as incomplete submission and will not be acceptable by ROC.