No escape from MACC's new Section 17A for companies

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Title : No escape from MACC's new Section 17A for companies
Category : Malaysians

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No escape from MACC's new Section 17A for companies

The new Section 17A of the MACC Act which took effect on June 1, 2020, introduces corporate liability for corruption and uses a deeming provision to shift the burden of proof to the business' directors, controllers and management. Section 17A applies to companies incorporated under the Malaysian Companies Act 2016 and also applies to any company or partnership incorporated or established anywhere outside Malaysia but which conducts business in Malaysia. Subsection 17A(6) stipulates that a ‘person associated’ with a ‘commercial organisation’ may include directors, partners, and employees of the commercial organisation, as well as any person ‘who performs services for or on behalf of the commercial organisation’. Association is determined by reference to all the relevant circumstances and not merely by reference to the nature of the relationship between the person and the comme…

The new Section 17A of the MACC Act which took effect on June 1, 2020, introduces corporate liability for corruption and uses a deeming provision to shift the burden of proof to the business' directors, controllers and management. Section 17A applies to companies incorporated under the Malaysian Companies Act 2016 and also applies to any company or partnership incorporated or established anywhere outside Malaysia but which conducts business in Malaysia. Subsection 17A(6) stipulates that a ‘person associated’ with a ‘commercial organisation’ may include directors, partners, and employees of the commercial organisation, as well as any person ‘who performs services for or on behalf of the commercial organisation’. Association is determined by reference to all the relevant circumstances and not merely by reference to the nature of the relationship between the person and the comme…


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