6 Director Types in Malaysia
- Executive Director - A person who works full-time for the company and manages its day-to-day operations.
- Non-Executive Director - A person who does not work full-time for the company but oversees the management, participates in board decisions, and votes.
- Nominee Director - A person appointed based on their status as an employee of the company, or appointed or represented by shareholders, employers, or bondholders.
- De facto Director - A person who holds a position in the company that is not officially designated as director, but exercises rights within the scope of directorial authority.
- Shadow Director - Someone who is not a director but has the ability to control the board of directors and the company. If they actually direct, they should assume directorial responsibilities.
- Alternate Director - A person selected to temporarily replace a company director in carrying out their duties, and can only be nominated as an alternate director if permitted by the articles.
Common accounting issue: Who can be appointed as a director?
~A person who is 18 years old or older.
~Of sound mind.
~Usually resides in Malaysia.
~Not an undischarged bankrupt.
~Not under any legal constraints.
~Not the company's auditor.
~The company's articles do not prohibit them from becoming a director.
~Most do not require specific academic or professional qualifications.
~Not sentenced to imprisonment for the past five years for the above crimes.
~Not convicted in Malaysia or abroad for any of the following crimes:
i.Offenses related to promoting, forming, or managing a company
ii.Bribery, fraud, or dishonesty offenses
iii.Offenses under sections 213, 217, 218, 228, or 539
Common accounting issue: Legal responsibilities of directors in Malaysia
Regardless of the type of directorship, the Companies Act holds all directors accountable for their responsibilities.
BR 16865 
US 8337 
VN 7062 
SG 1479 
AR 1381 
CA 1380 
AU 1325 
TH 1274 
