New standards Beneficial Owner (BO) in Malaysia
Basic Overview
- Under the 2024 Companies Act amendments, the Beneficial Owner (BO) requirements in Malaysia have been updated and enhanced
- All companies are required to submit BO information to SSM
- A BO must be a natural person who has control over the company
- Even without shareholding, a person can still be considered a BO if they are the ultimate controller of the company
Revised BO Criteria
A. Directly or indirectly holds at least 20% of shares in the company
B. Directly or indirectly holds at least 20% of shares with voting rights
C. Has ultimate effective control, whether formal or informal, over the company, board, or management
D. Has the right to directly or indirectly appoint or remove directors, and holds majority voting power at board level
E. Has an agreement with other shareholders to control the company through majority voting rights
F. Holds less than 20% of shares or voting rights but is still able to influence major decisions of the company
Situations Where BO Cannot Be Determined
- The company has no identifiable BO
- The BO cannot be identified
- The BO is still under verification
- The company is exempted from providing BO information
* If a BO cannot be identified, the company is required to designate a senior management personnel as the BO and register it with SSM.