Sanctions Imposed on Company Secretaries in Malaysia: What Business Owners Must Know 2026

In Malaysia, a company secretary plays a critical role in ensuring corporate compliance. However, recent actions by Suruhanjaya Syarikat Malaysia (SSM) show that serious misconduct can lead to severe penalties.

During the SSM Annual Dialogue 2025, SSM revealed cases where Practising Certificates (PC) of company secretaries were revoked due to unethical and illegal practices. This serves as an important reminder for both company secretaries and business owners.

Why Did SSM Revoke Practising Certificates?

SSM highlighted several serious misconducts that resulted in the revocation of practising certificates.

1. Assisting Criminal Scam Activities

Some company secretaries were found to be involved in international investment scams. These individuals:

• Allowed foreign criminals to use Malaysian residential addresses

• Submitted false information to SSM

• Helped incorporate companies and open bank accounts in Malaysia

Such actions are considered enabling criminal activities and are strictly prohibited.

2. Misuse of Practising Certificate (PC) Credentials

There were cases where company secretaries:

• Shared or rented out their PC user ID and password

• Allowed unqualified third parties to act as company secretaries

This is a serious breach of professional responsibility and corporate governance.

3. Conviction for Corporate Crimes

Company secretaries convicted under Section 198 of the Companies Act 2016 automatically lost their right to practise.
Offences include:

• Fraud

• Bribery

• Breach of trust

• Mismanagement

Once convicted, the practising certificate can be revoked permanently.

Why This Matters to Business Owners

Many business owners think a company secretary only handles paperwork. In reality:

• A company secretary is responsible for legal compliance

• Wrong decisions can expose companies to legal investigations

• Non-compliance may result in penalties, frozen bank accounts, or reputational damage

Choosing a qualified and ethical company secretary is a business necessity, not an option.

Key Takeaways for Companies in Malaysia

• Always appoint a licensed and active company secretary

• Never allow third parties to misuse company or SSM login details

• Ensure all information submitted to SSM is accurate and truthful

• Strong corporate governance protects your business long term

Our Commitment at Malaya Corporate

At Malaya Corporate, we uphold high standards of:

• Corporate governance

• Legal compliance

• Ethical company secretarial practices

We believe compliance is the foundation of a sustainable business.

Conclusion

The message from SSM is clear:
Corporate compliance is serious, and misconduct has consequences.

Business owners should always work with trusted professionals to safeguard their companies.

For reliable company secretarial and corporate advisory services, visit
👉 www.malayacorporate.com