Legal Liabilities of Major Shareholders
Reporting Legal Basis
- Substantial Shareholders must declare shareholdings under Section 60C of the Companies (Amendment) Act 2024.
- Applicable to any entity directly or indirectly holding 5% or more of the voting shares in a Public Company.
Trigger Events & Penalties
- Notification to the company is mandatory within the prescribed timeframe for:
- Changes in shareholding.
- Cessation of substantial shareholder status.
- Non-compliance Penalty: A fine of up to RM1,000,000.
Response to Section 60C Notice
- Upon receiving a 'Section 60C Notice' to disclose the Ultimate Beneficial Owner (BO):
- A truthful response must be provided.
- Non-disclosure Penalty: Imprisonment for up to 10 years, a fine of up to RM3,000,000, or both.
Provision of False Information
- Intentionally providing false or misleading information to the company constitutes a criminal offense.
- Penalty: Imprisonment for up to 10 years, a fine of up to RM3,000,000, or both.
Key Takeaway
- Nominee or figurehead status does not exempt anyone from these reporting obligations. Compliance is strictly required by law.