Corporate Liability – The Inside Out of Section 17A of MACC Act

Level

• Refresher

Accreditation

• 5 SIDC CPE points
• 4 FIMM CPD points

ICF Competency Type / Title / Level

• Core  / Corporate Governance / Level 2

Learning Outcome

• Recognise how corruption impacts society;
• Explain the new Section 17A of the MACC Act which will affect all corporates including listed companies;
• Identify tools for prevention of corrupt practices;
• List down the adequate procedures as defence for an organisation in the event of prosecution.

Course Synopsis

Corruption is a disease that has torn nations apart and it’s a cancer that can destroy societies if not tackled head-on.  World Economic Forum estimates that cost of corruption is at least US$2.6 trillion or approximately 5% of global GDP and according to World Bank, businesses and individuals pay more than US$1 trillion a year.  In Malaysia too, corruption is seen as a big issue as society sees rising cost associated with corrupt practices, both in the public and private sector.

Malaysia’s path towards addressing corruption issues took a giant step forward with the introduction of the Section 17A of the MACC Act 2009 in April 2018.  The provision of Section 17A criminalises an organisation for corruption-related actions by associated persons done for the benefit of the company.

The new section comes in force on 1 June 2020 and it is imperative for corporates to have the right framework to ensure that it is not caught off guard.  Most importantly, board members and senior management ought to understand the implication of Section 17A on them and what steps one can take to ensure it has adequate procedures ready.