Circular No. 48/19: Solvency Declaration Pursuant to Companies Act 2019 (26 Sept 2019)

(What Why Who When & How)

Please be informed that the Continuing Professional Development Sub-Committee is organizing a Seminar on the Solvency Declaration pursuant to Companies Act 2016.

The Companies Act 2016 (the Act) introduces substantial changes to the Malaysia corporate landscape and its impact on corporate law is inevitable.  One of the substantial changes is the introduction of solvency, making its compliance a prerequisite to some major corporate yet common activities and undertakings.  The rationale behind such requirement is to safeguard the interest of competing stakeholders, requiring directors to make solvency declarations before embarking on certain corporate undertakings, and non-compliance of which brings dire consequences.

This seminar aims to deal with the following fundamental issues:

  • What is profitability, liquidity and solvency, how to differentiate them?
  • What is solvency, in context of the Act?
  • How to determine solvency?
  • What is the solvency test?
  • What is the solvency statement?
  • How to relate solvency with a Company’s Annual Reports & Its Audited Financial Statements?
  • How to read and understand the Solvency Statement?
  • What types of corporate activities and/or undertakings require such declaration?
  • What are these corporate activities and/or undertakings?
  • Who is responsible for such declaration?
  • Whether such solvency test and statement can be out-sourced to external professional services providers?
  • Who is ultimately responsible and/or liable?
  • What are the consequences of non-compliance?
  • Much more

Particulars of the Seminar are as follows:

Date 27th September 2019 (Friday)
Time 9:00 a.m. to 5:00 p.m. (Registration at 8:30 a.m.)
Venue Level 1, Abdullah A. Rahman Auditorium
Johore Bar Building
No. 5 Jalan Tun Abdul Razak
Susur 1/1 80000 Johor Bahru
Fees RM 100-00 for Members of the Johore Bar
RM 50-00 for Pupils-in-Chambers l Law Students
RM 150-00 for Non Member
CPD code T3/27092019/JHB/JHB193569/5 (5 CPD points)

About the Speaker

Mr. Lim Kien Chai, a legal practitioner is a Chartered Accountant and an Advocate and Solicitor of the High Court of Malaya and has a multi-disciplinary professional and career background spanning over a period of more than 30 years. He holds the following academic and professional qualifications: Bachelor Degree of Accounting from the University of Malaya (Hons); Bachelor Degree of Law from the University of London (Hons); Chartered Institute of Management Accountants from the United Kingdom; Post-graduate professional qualification in Certified Internal Auditor from the United States of America; and Certificate of Legal Practice from Malaysia. He was a Past President of the Institute of Internal Auditors Malaysia.

Registration must be accompanied with payment to guarantee your place and is on a first-come first served basis.

CPD points and Certificate of attendance will be given upon completion of the whole session to participants who have attended until the end of the event.

Payment can be made by direct deposit or internet banking to:


Bank: CIMB Bank Berhad

Account no.: 80-0933164-8

Please direct all correspondence (including completed registration form and proof of payment) to the Johore Bar Secretariat by email to or by fax 07-276 1188 not later than Thursday, 26th September 2019.





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