Section 219 of the Companies Act 2016
- A director of a company shall give notice in writing to the company in relation to his/her interests in the company or related companies, such as shares, debentures, participatory interests, rights, options or contracts, etc.
Section 219(6)(a) states that a director who contravenes this section commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding 5 years or to a fine not exceeding RM3,000,000 or to both.
- The notice from the director shall be given within 14 days (for private companies) or 5 days (for public listed companies) from:
- The date the person becomes a director; or
- The date on which the director acquired the interest in the shares, debentures, participatory interests, rights, options or contracts; or
- The date of occurrence of the event giving rise to the change.
Section 219(6)(b) states that a director who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding RM25,000 and, in the case of a continuing offence, to a further fine of RM1,000 for each day during which the offence continues.
- The company shall send a copy of the notice to each of the other directors of the company within 7 days from receiving such notice from the director.
Section 219(7) states that a company that contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding RM25,000 and, in the case of a continuing offence, to a further fine of RM1,000 for each day during which the offence continues.