Document background
The Circular Resolution of Shareholders is a crucial corporate governance tool in Malaysian business practice, authorized under the Companies Act 2016. This document type is particularly valuable when companies need to obtain shareholder approval efficiently without the logistical challenges of organizing physical meetings. It's commonly used for routine matters such as approval of financial statements, appointment of directors, declaration of dividends, or other corporate actions requiring shareholder consent. The resolution must be circulated to all shareholders, and once signed by the required majority, it has the same legal effect as a resolution passed at a general meeting. This method is especially useful for companies with shareholders in different locations or when urgent decisions are needed. However, certain matters, such as removal of directors or auditors, still require physical meetings under Malaysian law.
