Description
- A Resolution for Change of Auditor is an official document prepared by a company to record the shareholders’ decision to remove or appoint a new company auditor. This resolution must be properly documented, approved during a board meeting or shareholders’ meeting, and submitted to the Companies Commission of Malaysia (SSM). The purpose is to ensure transparency, compliance with the Companies Act 2016, and proper record of the company’s financial oversight changes.
GOV Department
- Suruhanjaya Syarikat Malaysia (SSM) / Companies Commission of Malaysia
Details
- The company must pass a formal board or shareholders’ resolution to approve the appointment or removal of an auditor.
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The resolution must include:
- Name of the outgoing and incoming auditor
- Effective date of change
- Reason for the change (if applicable)
- Authorized company signatories
- The resolution must be filed to SSM within the prescribed timeline using the appropriate forms (e.g., Form 36 or Section 271 Notice depending on the case).
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Supporting documents may include:
- Letter of resignation from the previous auditor
- Letter of consent from the new auditor
- Copy of the board/shareholders’ resolution
- The process must comply with Section 263 and 271 of the Companies Act 2016.
Important Rules
- The company must notify SSM of any change of auditor within 30 days.
- Auditor resignation must be formally accepted through a shareholders’ resolution.
- The new auditor cannot be appointed without written consent.
- Failure to file or update SSM records may result in penalties.
- All resolutions must be properly documented and signed by authorized company officers.
Compound & Punishment
- Failure to notify SSM of auditor change: Fine up to RM50,000.
- Providing false or misleading information in filings: Fine up to RM500,000 or imprisonment up to 10 years, or both (under Companies Act 2016).
- Non-compliance with audit requirements may lead to company and director penalties.
Advisor
Jeffrey Eh Hao Yih , Director
Jeffrey has been providing expert guidance for businesses dealing with ongoing challenges. With his expertise, he aids clients in strategic business planning, streamlining operations, and enhancing productivity. Additionally, Jeffrey offers diverse business technology services to help digitize traditional businesses effectively.