What happens to a company if a single director who is also the single shareholder passes away in Malaysia?
If the sole director and shareholder of a company passes away, the company secretary is obligated by section 209(3) to convene a meeting of the deceased's next of kin to appoint a new director. The Registrar of Companies may order the company to be struck off the register if the next of kin fails to appoint a director within six months of the director's passing.
What is the definition of "next of kin" in section 209(3)?
The term "next of kin" is not defined in the Companies Act 2016. A Practice Note will be issued to clarify the definition for the purposes of this section.