Accounts to be kept
(1) A Langkawi company shall cause to be kept proper accounting and other records as will sufficiently explain the transaction and financial position of the company.
(2) Every Langkawi company and the directors of the company shall cause appropriate entries to be made in the accounting and other records of the company within sixty days of the completion of the transactions to which they relate.
(3) The accounting and other records of a Langkawi company shall be kept at the registered office of the company or at such other place in Langkawi as the directors think fit, and shall at all times be open to inspection by any director of the Langkawi company and shall be kept in such manner as to enable them to be conveniently and properly audited.
(4) Notwithstanding subsection (3), the accounting and other records of operations outside Langkawi of a Langkawi company may be kept by the company at a place outside Langkawi, and there shall be sent to and kept at a place in Langkawi such statements and returns with respect to the business dealt with in the accounting and other records so kept as will enable to be prepared true and fair profit and loss accounts and balance sheets and any documents required to be attached thereto.
(5) If any accounting and other records are kept at a place outside Langkawi pursuant to subsection (4), the company shall, if required by the Registrar to produce those accounting and other records at a place in Langkawi, comply with the requirements.
(6) The Registrar may, in any particular case, direct that the accounting and other records of a Langkawi company be open to inspection by an approved auditor acting for a director of a Langkawi company, but only upon an undertaking in writing
given to the Registrar that information acquired by the auditor during his inspection shall not be disclosed by him except to that director.
(7) Any director of a Langkawi company who fails to take all reasonable steps to secure compliance by the company with the requirements of this section and sections 83 and 84 shall be guilty of an offence against this Act.
Accounts to be laid before meeting
(1) Subject to section 85, the directors of a Langkawi company shall cause to be laid before the company at a meeting of members the audited accounts or unaudited accounts, as the case may be, of the company not more than nine months after the date to which the audited accounts or unaudited accounts are made up.
(2) Notwithstanding subsection (1), a Langkawi company shall not be required to lay before the company at a meeting of members the audited accounts or unaudited accounts, as the case may be, of the company if the members unanimously resolve that such accounts need not be laid at a meeting of members in respect of each financial year.
(3) If default is made in complying with this section, the Langkawi company and every officer of the company shall be guilty of an offence against this Act.
Penalty: Ten thousand ringgit. Default penalty.
Accounts to be sent to members
A copy of every audited account or unaudited account, as the case may be, which is to be laid before a Langkawi company at a meeting of members accompanied with a copy of the auditor’s report thereon (if applicable) shall, not less than seven days before the date of the meeting, be sent to all members of the company.
Auditor to be appointed
(1) Subject to section 85, the directors of a Langkawi company shall, within ninety days of its incorporation, appoint a person or persons to be the auditor or auditors of the company.
(2) A Langkawi company shall, whenever it appoints an auditor, lodge with the Registrar, within thirty days of the date of the appointment of the auditor, a notice thereof in the prescribed form accompanied with the auditor’s written consent.
Auditor not required in certain circumstances
A Langkawi company shall not be required to appoint an auditor so long as—
(a) the company or a director, officer, agent or any person on behalf of the company does not issue an invitation or distribute forms of application to the public or to any member of the public to subscribe for shares in the company; or
(b) the members of the company so resolve at a meeting of members of the company that such an appointment need not be made in respect of each financial year.
Removal and resignation of auditors
(1) A Langkawi company may, at a meeting of members of which special notice has been given to the auditor and the Registrar, but not otherwise, remove an auditor from office, but shall at that meeting at which the auditor is removed or at a meeting of members held within one month thereafter appoint an approved auditor to take the place of the auditor so removed.
(2) An auditor of a Langkawi company may, if he is not a sole auditor, resign at any time but a sole auditor of a Langkawi company may only resign at a meeting of the members.
(3) If an auditor gives written notice to the directors of a Langkawi company that he desires to resign, the directors shall, as soon as is practicable, call a meeting of members of the company for the purpose of appointing an auditor in place of the auditor who desires to resign, and on the appointment of another auditor the resignation shall take effect.
(4) A Langkawi company shall, within thirty days of any change in the auditor of the company, lodge with the Registrar a notice thereof in the prescribed form and such notice shall be accompanied with the new auditor’s written consent.
Remuneration of auditor
The fees and expenses of an auditor of a Langkawi company, unless required by the auditor to be fixed by a resolution of the members of the company, may be fixed by the directors.
Auditor may attend meetings
An auditor of a Langkawi company may attend and address all meetings of members of the company.
Rights and duties of auditors
(1) Every auditor of a Langkawi company shall report to the members whether, in his opinion, the accounts of the company are properly drawn up so as to give a true and fair view of the company’s affairs.
(2) Every auditor of a Langkawi company shall be entitled to be furnished with a copy of the memorandum and articles of association of the company and shall familiarise himself with the terms and conditions contained therein.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
