Payment of dividend and solvency requirement – Webinar 2026

HRD Corp Claimable Course (T&C applies*)
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Webinar sessions:
9:00am - 12:00pm
2:00pm - 5:00pm
The payment of dividends is one of the ways in which a company "share the wealth" generated from running the business. Companies may distribute the profits it makes from the capital that the shareholders have invested. They are usually a cash payment to the investors of a company but may take other forms of settlement. Dividends are commonly paid on an annual basis but at times the company may decide to distribute its profit more than once. 
The payment of a dividend to shareholders will however leave the company with fewer assets with which to meet its liabilities to its creditors. For that reason, the Companies Act 2016 imposes provision on the directors to ensure that the company is solvent before making such distribution. Even if the solvency is met, there are other legal considerations which the company has to adhere to.
This webinar is designed to help learners understand the statutory requirements governing the distribution of profits and the consequences of declaring an unlawful dividend. It equips learners with the knowledge required to assess and ensure the solvency of a company before declaring dividends. Learners will also gain a clearer understanding of the parties authorised to declare dividends, the timing of dividend payments, and the various methods of payment. The course covers the declaration of dividends by private companies as well as public companies (both listed and unlisted).
Key topics covered:
Profits that are allowed for distribution – retained profit or current year profit?
Right to declare the dividend – shareholders or directors?
Drivers for dividend payment
Dividend policy
How a company can satisfy the solvency test
Directors’ responsibility on the solvency requirement
Recovery of unlawful distribution of profit
Timing of payment of dividends and compliance with Unclaimed Monies provision
Mode of payment of dividend – cash, set-off, transfer of assets
Tax voucher contents for single tier dividend and tax exempt dividend
Procedures on dividend payment
Presenter:
Leong Oi Wah
Ms Oi Wah has more than 30 years of experience in handling corporate secretarial matters in the profession and the corporate sector. She has been involved in advising on corporate secretarial requirements including corporate restructuring and compliance with various regulatory bodies such as the Registrar of Companies, Bursa Malaysia Securities Berhad, Securities Commission and other authorities. She is currently Director, Corporate Development of Epsilon Advisory Services Sdn Bhd which specialises in providing the full range of corporate secretarial and advisory services and a regular trainer of Continuing Professional Education programme with the Companies Commission Training Academy and professional bodies. She co-authored a book “Company Meetings, Minutes and Resolutions in Malaysia” published in 2021 by the Malaysian Current Law Journal.