Advantages of Documents Keeping
The most important is
- According to COMPANIES ACT 2016, SECTION 245, a company shall keeps proper accounting and records, contravene to this shall be liable to a fine not exceeding RM500,000.00 or to imprisonment for a term not exceeding 3 years or both.
- A company shall—
- keeps the accounting and other records to sufficiently explain the transactions and financial report.
- keeps the accounting in a manner so as to enable the account to be conveniently and properly audited.
- The accounting and other records shall include such statements and returns in business dealt so as to enable the preparation of true and fair financial statements and such to be attached to the financial statements.
- statement of income and expenditure; and
- invoices, vouchers, receipts and such necessary documents to verify in a return
A company shall retain the records for seven years after the completion of all transactions to entries related.
The financial year of a company is the year ending 30.06.2002.
The records of the company for the financial year ending
30.06.2002 should be retained until 31.12.2009
If the financial year of a company is ending 31.03.2002 and the company fails to furnish its return for the Y/A 2002 by 30.09.2002 as required, but the return is furnished on 23.05.2003.
Then the records of the company for the financial year ending
31.03.2002 should be retained until 31.12.2010 [i.e. 7 years from the end of 2003 (the year in which the return is furnished), and not from the end of 2002 (the year to which the records relate)].
All records shall be kept at the company’s registered office or at directors’ discretion and be made available for inspection at anytime. But if the operations is outside Malaysia, records may be kept there, accounting and other records shall be sent to and kept at a place in Malaysia and be made available for inspection by the directors at all times.
If any accounting and other records are kept at a place outside Malaysia, the government officer may require the company to produce those records at a place or determine the type and manner the records to be kept in Malaysia.
The Court may order that the accounting and other records of a company be opened to inspection by an approved company auditor acting for a director, subject to a written undertaking given to the Court that information acquired shall be disclosed ONLY to that director.