Subject company law

DIRECTORS FACE HEAVIER PENALTIES UNDER NEW COMPANIES ACT KUALA LUMPUR: A company director who breaches the newly-implemented Companies Act 2016 will face a heavier fine of up to RM3mil and a maximum five-year term of imprisonment, or both, if found guilty. The Companies Act 2016, which replaced the previous Companies Act 1965, came into effect in stages from Jan 31, 2017. InCorp director, Kong Ming Enn, said a director who improperly used the company's property, opportunities, information acquired by virtue of position, or engaged in business which was in competition with the company, would face the penalties mentioned above. "The maximum of RM3mil fine is 100-fold increase from the RM30,000 under the previous law," he told a media workshop on the Companies Act 2016 in Kuala Lumpur on Tuesday. InCorp is a company secretarial services provider owned by Elegant Management Sdn Bhd. Retrieved from The Star Online: Published on Wednesday 1st February 2017 Based on the above, analyse the newspaper report and explain in detail on the duties of directors in reference to the Companies Act 2016 and case law