The two regimes

Section 230 splits the approval rules along the public/private divide.

Private companies, section 230(2)

The board of directorsmay approve directors' fees and any benefits payable to a director, subject to the company's constitution. No shareholder resolution is required up front, but the board's authority is conditional on the next step.

Notification of shareholders, section 230(3)

Within 14 days from the date the board approves the payment, the company must notify all its shareholders in writing of the approval and the amount. Failure to notify is an offence carrying a fine of up to RM250,000 on the company and on every officer in default.

The minority shareholder challenge, section 230(4)

Shareholders holding at least 10% of the total voting rights may, within 30 days of being notified, require the company to pass a resolution at a general meeting to approve the payment. If the resolution is not passed, the payment is deemed a debt due from the director back to the company. The "approval" the board gave is, in effect, conditional.

Public companies and listed-company subsidiaries, section 230(1)

For public companies and for private companies that are subsidiaries of a listed company, directors' fees and benefits must be approved by shareholders at a general meeting. There is no board-only shortcut. Failure to comply attracts a fine of up to RM3 million, and unauthorised payments are likewise recoverable from the director as a debt.

Why this matters in practice

  • The 14-day notification window is short, set a calendar trigger linked to the date of every board resolution approving director payments.
  • A 10% minority shareholder block is more common than founders expect. The 30-day challenge clock is real.
  • For groups containing a listed subsidiary, do not assume the private-company shortcut applies. The general meeting requirement reaches down.
  • Document, notify, and keep the paper trail. Section 230 imposes statutory obligations with criminal penalties on default; a clean paper trail is what protects directors if compliance is questioned later.

If your board is approving director remuneration this year, or you are restructuring how directors are paid, please contact us. The section 230 paper trail is what protects directors when the decision is later questioned.

两套机制

第 230 条按「公众／私人」公司划分两套批准机制。

私人公司，第 230(2) 条

在符合公司章程的前提下，董事会可批准董事薪酬及任何应付董事的福利。事前不需股东决议，但董事会的权力受下一步条件约束。

通知股东，第 230(3) 条

自董事会批准付款之日起 14 日内，公司须以书面方式通知所有股东该批准事项及金额。未依规定通知者，公司及每位失职高级人员可被处以最高 250,000 令吉罚款。

小股东挑战权，第 230(4) 条

持有至少 10%表决权的股东，可在收到通知后 30 日内要求公司在股东大会上对该付款作出决议。若决议未获通过，该笔付款将被视为董事对公司之债务。董事会原先的「批准」，实际上是有条件的。

公众公司及上市公司之附属公司，第 230(1) 条

公众公司，以及上市公司之私人附属公司，其董事薪酬与福利必须由股东大会批准，没有董事会单独批准的捷径。违反者最高可被处以 300 万令吉罚款；未经授权之付款，同样以债务形式追回。

实务要点

  • 14 日通知窗口极短，为每一次涉及董事薪酬的董事会决议设置自动日历提醒。
  • 10% 的小股东并非罕见情形。30 日挑战期是真实约束。
  • 若集团中含有上市公司之附属公司，请勿假设「私人公司捷径」可适用。股东大会要求向下延伸。
  • 批准、通知、留存完整记录。第 230 条为法定义务，违反者可承担刑事责任；完整的书面记录是日后董事面对合规质疑时的关键保障。

若贵公司董事会今年内将批准董事薪酬，或您正在重新设计董事薪酬安排，请与本所联系。第 230 条之书面记录，是日后董事面对合规质疑时的关键保障。