The 2018 Malaysian Anti-Corruption Commission (Amendment) Act (that is MACC [Amendment] Act 2018) has been passed in Parliament and gazetted on 4th May 2018. The main thrust of this Act is to introduce a new far-reaching corporate liability provision (the "Provision") into the MACC Act.
The MACC (Amendment) Act 2018 introduces a new Section 17A into the MACC Act. This Section provides that "a commercial organisation commits an offence if any person associated with the commercial organisation commits a corrupt act in order to obtain or retain business or advantage for the commercial organisation".
Once the offence is committed by the commercial organisation, the law will deem certain persons in the organisation to have also committed that offence.
Although the onus is now shifted to the individual who is deemed to have committed the offence, there are various "lines of defence" that such persons may consider deploying across the organisation.
The penalties, upon conviction, may entail a fine ten (10) times the value of the gratification or RM1 million, whichever is higher, and/or a jail sentence not exceeding twenty (20) years. In view of the hefty penalties, it is crucial for Directors, Partners and Management to have systems in place to demonstrate diligence in preventing such offences.
This seminar aims to introduce the new Provision and its implications to companies (local companies as well as foreign companies having business in Malaysia) and partnerships (unlimited as well as limited, carrying on business whether in Malaysia or elsewhere), their Directors, Partners and Management.
The main focus is on the implication of the Provision, the extent of its coverage, the "lines of defence" available to those charged with governance (that is the Directors, Partners and Management). Case studies will be discussed to elucidate the implication of this Provision to better prepare stewards of organisations for compliance. Other legislations like the Companies Act 2016, the Capital Markets & Services Act 2007 and the Malaysian Code on Corporate Governance, insofar as they relate to equivalent offences, will also be discussed in conjunction with the Corporate Liability Provision.