Legal Update: MACC Act To Be Amended By Year’s End To Include Corporate Liability Provision

KUALA LUMPUR, April 22 (Bernama) — The Corporate Liability, a new provision that will be included in the Malaysian Ant-Corruption Commission (MACC) Act 2009, is expected to be tabled in Parliament by year’s end.

Minister in the Prime Minister’s Department Datuk Seri Paul Low Seng Kuan said drafting of the provision was currently in the final stage.

“Once it comes into effect, companies can be held responsible if their employees commit bribery under the amended act, unless they can prove that they have taken adequate measures to prevent it.

“We cannot jail a company, but we can fine them with heavier penalty,” he told reporters after attending an event here, today.

Currently only employees who committed bribery would be charged if they were found guilty while companies were not liable for the crime.

Low added that the new provision was also expected to be a strong persuasion in encouraging more companies to sign the ‘Corporate Integriti Pledge’, a programme introduced in 2012 that aimed to combat corruption in the corporate sector.

Earlier when launching a book on ‘Guide to Implement The Corporate Integrity System Malaysia’, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek said only 395 out of 444,544 companies that were active under the Companies Commission of Malaysia’s (SSM) registry had signed the pledge up to last February.

“As such I urge more companies to come forward to sign it and practise the best business practices and principles,” he said.

He said the SSM book to instill an accountable and ethical business culture besides creating a sustainable corporate governance can be uploaded via the website http://www.ssm.com.my.

Source: Bernama

Date of Publication: April 22nd, 2014

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