Shareholder primacy, controlling shareholders and Malaysia’s Companies Act 2016
The predominant corporate governance model within the Commonwealth mimics that of the UK where powers of management are reserved for the board. This director primacy model, however, is being challenged by proposals to expand shareholders’ decision-making rights including giving shareholders the powe...
| Main Authors: | , |
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| Format: | Article |
| Language: | English English English |
| Published: |
Taylor and Francis Ltd.
2017
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/65493/ http://irep.iium.edu.my/65493/1/65493%20Shareholder%20primacy%2C%20controlling%20shareholders.pdf http://irep.iium.edu.my/65493/2/65493_Shareholder%20primacy%252C%20controlling%20shareholders_SCOPUS.pdf http://irep.iium.edu.my/65493/3/65493_Shareholder%20primacy%252C%20controllingshareholers_WOS.pdf |
| _version_ | 1848786399725092864 |
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| author | Mohd. Sulaiman, Aiman @ Nariman Rachagan, Shanty |
| author_facet | Mohd. Sulaiman, Aiman @ Nariman Rachagan, Shanty |
| author_sort | Mohd. Sulaiman, Aiman @ Nariman |
| building | IIUM Repository |
| collection | Online Access |
| description | The predominant corporate governance model within the Commonwealth mimics that of the UK where powers of management are reserved for the board. This director primacy model, however, is being challenged by proposals to expand shareholders’ decision-making rights including giving shareholders the power to initiate their own proposals and to instruct the board. Amidst this debate, Malaysia has passed its new Companies Act 2016 which contains, amongst others, s 195 which empowers shareholders to make binding recommendations to the board relating to the management of the company. Empowering shareholders by giving them such powers have been the subject of intense criticisms. This article examines s 195 and the shareholders participation eco-system to provide an idea of the law in practice as well as to address the concerns relating to giving shareholders such expansive power. This article advances the view that the decision-making framework under the Companies Act 2016 and the actual functioning of the power to instruct show that these criticisms may be unfounded and the potential setbacks of shareholder empowerment can be minimised through judicious use of legal rules. |
| first_indexed | 2025-11-14T17:08:25Z |
| format | Article |
| id | iium-65493 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English English |
| last_indexed | 2025-11-14T17:08:25Z |
| publishDate | 2017 |
| publisher | Taylor and Francis Ltd. |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-654932018-08-08T03:46:29Z http://irep.iium.edu.my/65493/ Shareholder primacy, controlling shareholders and Malaysia’s Companies Act 2016 Mohd. Sulaiman, Aiman @ Nariman Rachagan, Shanty KPG Malaysia The predominant corporate governance model within the Commonwealth mimics that of the UK where powers of management are reserved for the board. This director primacy model, however, is being challenged by proposals to expand shareholders’ decision-making rights including giving shareholders the power to initiate their own proposals and to instruct the board. Amidst this debate, Malaysia has passed its new Companies Act 2016 which contains, amongst others, s 195 which empowers shareholders to make binding recommendations to the board relating to the management of the company. Empowering shareholders by giving them such powers have been the subject of intense criticisms. This article examines s 195 and the shareholders participation eco-system to provide an idea of the law in practice as well as to address the concerns relating to giving shareholders such expansive power. This article advances the view that the decision-making framework under the Companies Act 2016 and the actual functioning of the power to instruct show that these criticisms may be unfounded and the potential setbacks of shareholder empowerment can be minimised through judicious use of legal rules. Taylor and Francis Ltd. 2017 Article PeerReviewed application/pdf en http://irep.iium.edu.my/65493/1/65493%20Shareholder%20primacy%2C%20controlling%20shareholders.pdf application/pdf en http://irep.iium.edu.my/65493/2/65493_Shareholder%20primacy%252C%20controlling%20shareholders_SCOPUS.pdf application/pdf en http://irep.iium.edu.my/65493/3/65493_Shareholder%20primacy%252C%20controllingshareholers_WOS.pdf Mohd. Sulaiman, Aiman @ Nariman and Rachagan, Shanty (2017) Shareholder primacy, controlling shareholders and Malaysia’s Companies Act 2016. Journal of Corporate Law Studies, 17 (1). pp. 203-224. ISSN 1473-5970 http://www.tandfonline.com/doi/abs/10.1080/14735970.2016.1245377?journalCode=rcls20 10.1080/14735970.2016.1245377 |
| spellingShingle | KPG Malaysia Mohd. Sulaiman, Aiman @ Nariman Rachagan, Shanty Shareholder primacy, controlling shareholders and Malaysia’s Companies Act 2016 |
| title | Shareholder primacy, controlling shareholders and Malaysia’s Companies Act 2016 |
| title_full | Shareholder primacy, controlling shareholders and Malaysia’s Companies Act 2016 |
| title_fullStr | Shareholder primacy, controlling shareholders and Malaysia’s Companies Act 2016 |
| title_full_unstemmed | Shareholder primacy, controlling shareholders and Malaysia’s Companies Act 2016 |
| title_short | Shareholder primacy, controlling shareholders and Malaysia’s Companies Act 2016 |
| title_sort | shareholder primacy, controlling shareholders and malaysia’s companies act 2016 |
| topic | KPG Malaysia |
| url | http://irep.iium.edu.my/65493/ http://irep.iium.edu.my/65493/ http://irep.iium.edu.my/65493/ http://irep.iium.edu.my/65493/1/65493%20Shareholder%20primacy%2C%20controlling%20shareholders.pdf http://irep.iium.edu.my/65493/2/65493_Shareholder%20primacy%252C%20controlling%20shareholders_SCOPUS.pdf http://irep.iium.edu.my/65493/3/65493_Shareholder%20primacy%252C%20controllingshareholers_WOS.pdf |