By AZIZAM AZIZAN
Why Company Secretaries are Resigning in 2026: A Guide for Business Owners
The corporate landscape in Malaysia is shifting as we enter 2026. Many business owners have noticed a sudden trend: their Company Secretaries (CoSec) are resigning. Even established firms like Malaya Corporate have begun resigning from companies that refuse to comply with statutory requirements.
This “mass exit” is not just a rumor—it is a proactive move to protect both the firm and the clients who are serious about their business.
The 2026 Reality: Why We Say “No” to Non-Compliance
The buzz in the industry started with concerns that Company Secretaries could be held personally liable for a company’s failure to comply with laws like AMLA (Anti-Money Laundering Act) or financial reporting standards.
At Malaya Corporate, we have taken a firm stand. We are resigning from companies that:
Ignore Professional Advice: When directors repeatedly overlook legal warnings.
Miss Statutory Deadlines: Failing to provide documents for Annual Returns or Audits despite multiple reminders.
Risk Our License: As licensed professionals (MACS), we cannot represent entities that compromise corporate governance.
The 30-Day Rule: Don’t Risk a Compound
If your secretary has resigned, you must act fast. Under Section 235 of the Companies Act 2016, a company cannot be without a secretary for more than 30 days.
Leaving the position vacant in 2026 will lead to:
Automatic SSM Compounds: Authorities are now using automated systems to track vacancies and issue fines immediately to directors.
Banking Paralysis: You cannot update bank signatories or apply for corporate loans without a certified Board Resolution.
Blacklisting: Directors of non-compliant companies may face difficulties registering new businesses in the future.
The 2026 Reality: Liability vs. Responsibility
The buzz started when rumors suggested that Company Secretaries would be held legally responsible for a company’s failures—especially regarding AMLA and financial reporting.
However, SSM has clarified that as long as a secretary performs their duties with due diligence, they are protected. The key takeaway for 2026 is:
The Power of the Reminder: A secretary’s job is to advise. If they have sent you consistent reminders about your compliance deadlines, they have fulfilled their legal duty.
Gatekeeper Role: Secretaries are now more selective. They are resigning from companies that ignore legal advice to protect their own professional licenses.
Conclusion
The “resignation wave” of 2026 is a reminder that compliance is no longer optional. If your secretary is constantly reminding you to follow the rules, it’s because they are saving you from heavy fines. If you are currently without a secretary, appoint one today to keep your business safe and compound-free.