ledgengroup, Author at LEDGEN Group

At the height of the COVID-19 pandemic, there was a sharp turn towards holding Annual General Meetings (AGM) virtually. Since then, many businesses have seen several benefits that a virtual AGM can offer compared to physical AGM attendance. Today in our endemic phase, virtual AGMs continue to gain traction and have become the preferred choice for many companies.

AGMs are usually held in accordance with the requirements under the Companies Act to present the company’s financial performance and to seek shareholders’ votes on current issues of the company such as appointments of the board, board remuneration, dividends payments and the appointment of auditors.

In many instances, it has also become a sole opportunity for shareholders to engage with the Company Directors and enquire regarding the Company’s business activities and financial status. An AGM is a formal and important affair required by law in many countries, including Singapore and Malaysia.

Are Virtual AGMs Legal & Digitally Secure?

A virtual AGM is when an Annual General Meeting is conducted via a televised or video streaming function that connects the company’s top management with their shareholders over a virtual platform.

Yes, virtual AGMs are allowed under the regulatory requirements of Malaysia and Singapore. Sparked by health measures brought by the pandemic, it is now permissible for registered organisations to conduct AGMs virtually for the foreseeable future.

Companies have no need to worry about the security and integrity of virtual AGMs, provided the technology or method utilised enables the members of the company to participate and exercise their rights to speak and vote at the meeting. Today’s virtual AGMs are highly secured, with most video streaming technology platforms equipped with modern, state-of-the-art encryption techniques to ensure data protection.

To fortify this security further, some companies have upgraded their digital safety standards to include firewalls and other features that make it almost impossible for hackers to hijack or tamper with the virtual AGM.

Key Benefits of Conducting Virtual AGMs

Why are companies of all sizes and industries moving their Annual General Meetings from boardrooms to computer screens? Let us look at the advantages virtual AGMs can offer:

1. Eliminate Geographical Boundaries

A virtual AGM is most suitable for organisations where the shareholders are dispersed in a wide range of geographical locations. There is a lot of advanced preparation to be done before an AGM, more so when the participants are located in different countries.

Virtual AGMs eliminate all the logistical challenges to physical arrangements such as venues, accommodation, seating arrangements and others. Cross-border AGMs can be made easier and less hassle when done virtually.

2. Easy on Budget

A virtual AGM can reduce a considerable amount of costs compared to physical AGMs. There are a lot of plans and budgets to be allocated, including venue bookings, catering, accommodation for the participants and many more costs.

By adopting a virtual AGM, the travel and accommodation costs will be reduced because shareholders can take part actively from anywhere in the world. This would ultimately lead to greater cost savings for the organisation without jeopardising the overall experience of an AGM.

3. Maintain Participant’s Engagement

Virtual AGM platforms would usually have features that can maintain if not improve engagement with participants. They can ask questions before and during the event, draw their votes, generate text-to-speech subtitles, and many more technological features of a virtual AGM. All this helps to enhance the overall participant and shareholder engagements and promote a richer discussion.

Most virtual AGM tools also possess e-voting capabilities. This can be done either by sending the participants a custom voting link or by having a dedicated e-voting feature on the software that allows participants to vote instantly. All these features would necessarily need to be highly secured. As such, these virtual platforms are usually equipped with backup channels, ISO-certified security features and customer support.

4. Better Time Management & Control

It can be said that virtual AGMs are better for timekeeping and management. Unlike a physical AGM, virtual AGMs usually start sharp on time because it is better coordinated. Pre-AGM networking sessions, for example, are better controlled to not go over the time as per schedule.

Depending on the platforms used to hold the Annual General Meeting, there are other features to keep time and give the organiser better control. This includes timers and time reminders, attendance tracking, nominee management, and more.

5. Greater Transparency & Accuracy

Having your Annual General Meeting virtually provides an opportunity for better transparency and accuracy because every activity is recorded. The session itself will be recorded into a video, and everything discussed will be documented and made accessible. With everything managed digitally, lengthy paperwork can be reduced. E-votes are counted digitally as well, leaving little room for error and ensuring everyone is accounted for.

Conclusion

Whether it is done virtually or in person, Annual General Meetings are compulsory for every registered organisation in a local jurisdiction. With new work habits and flexibility increasingly in demand, virtual AGMs might be here to stay. Soon, more companies will make the permanent shift towards a virtual setting where participation is remote, but still in line with regulatory compliance.

Talk to Ledgen Group about managing a virtual AGM and how it can be done in compliance with local regulations. Our team of capable professionals have extensive experience in corporate secretarial matters in Asia.

Learn more about Ledgen’s corporate secretarial services today.

The workplace has seen major changes since the age of information technology started. This change was accelerated further by external forces in the economic, social, and global health events. Many new work norms have emerged such as remote working, as well as behaviours and trends brought about by new generations of employees. Thus, as time and workplace behaviour change, naturally, so do leadership and management.

Post-pandemic HR managers play a key role in the organisation. Their strategic and critical skills can help empower the workforce and find a balance between the company’s goals and the employees’ demands. Hence why there is a need for managers to acquire specific skills and upskill themselves to overview business operations in the new era.

What would be the core competencies that today’s HR managers need to lead effectively? Here are a few:

1. Decision-Making & Problem-Solving

Every day, HR managers make decisions that are crucial to the growth and performance of the organisation. As managers, they need to provide HR expertise, advice, hands-on support and solutions to management teams, head of departments and employees. For HR involved in recruitment, they have to solve problems relating to hiring, training and retaining employees.

Some managers would also need to solve conflicts in the workplace, lead conversations on termination or retrenchment, and many more. Therefore, skills such as critical thinking, impartial judgement and decisive actions are some of the core skills every HR manager should master.

2. Depth of Legal Knowledge

HR managers need to have a good understanding of law, particularly employment laws of their country. In order to make a sound decision, they need a good grasp of legal knowledge. In Malaysia for example, one of the guiding statutes for employment law is the Employment Act of 1955. Starting January 1st, 2023, the Employment (Amendment) Act 2022 will come into force, bringing with it some significant revisions on workplace discrimination and wages.

Managers would need a thorough understanding of this new amendment, and communicate effectively to their employees and reporting director. This will thus ensure that the organisation stays in compliance with the current employment legislation.

3. Managing Compensation and Benefits (ComBen)

Typically, in smaller businesses, there are one or two human resources specialists who are assigned to supervise the salary and benefits program. In larger organisations with a bigger workforce, however, the responsibilities are typically divided up. HR managers are nevertheless responsible for the ComBen plan and structure that is aligned with the company goals.

Compensation managers need to continuously examine the current market pay rates for each existing and future job description in order to update the senior management on recommended compensation structures. The compensation department also oversees the company’s talent management aspect by collaborating with the respective operational divisions on crafting succession plans.

Meanwhile, HR managers in charge of Benefits are responsible for duties such as liaising with retirement account administrators or negotiating group health coverage rates with insurance carriers. Payroll is, of course, a component of HR’s compensation and benefits division, but many businesses elect to contract out this task to a bookkeeper or payroll service provider, especially if the HR team is lean or small and the companies usually prefer more focus is on Learning and Development (L&D) plans. For those who do not, the compensation team often focuses mostly on planning and strategy, with the payroll team concentrating on the administrative part of payroll processing.

4. Effective Communication

HR professionals frequently have to conduct interviews, settle disputes, deliver presentations, and explain corporate policies to staff members. In order to maintain effective communication, HR managers have to be effective listeners. Being a good listener fosters open communication, and trust, and reduces resentment. It enables a manager and leader to evaluate opposing viewpoints and identify useful solutions.

Other than that, HR managers have to ensure they master the skills in written communications. This includes everyday tasks such as composing emails, reports, and policy, to name a few. Good writing skills can greatly help managers to bring their point across and prevent misunderstandings. Besides that, HR managers would frequently talk to employees about workplace challenges and propose training programmes. Those with strong communication and presenting abilities will be seen as capable and reliable.

5. Digital & Technology Skills

HR managers need to be able to adjust to new technology as the world becomes more and more digitalised. Tech-savvy HR leaders will have an advantage when managing the aforementioned tasks. For instance, social media platforms assist them in posting job positions online and reaching out to more candidates. Additionally, while recruiting and hiring, Talent Acquisition Software or Application Tracking System (ATS) can greatly facilitate their work.

Therefore, having strong digital abilities is essential for HR managers. They also need to master how to use the HRIS systems to facilitate the processes in business operations. In short, there are various ranges of responsibilities that HR managers are required to handle which need digital skills.

6. Data-Driven & Analytical Skills

The use of data analytics to improve decisions is being pushed through all departments, HR included. Thus, a majority of HR leaders find the need to be analytical and data-driven. Understanding important HR KPIs, including hiring, engagement, and retention as well as employee value and performance are a must to be a competent HR manager.

Being a data-driven and analytical HR leader means being impartial to decision-making, and relying on facts instead of opinions. This ultimately creates a merit-based workplace that retains high performers and an objectively positive environment, all using accurate data.

7. Continuous Learning & Improvement

Learning is an ongoing process. Good HR leaders constantly and instinctively see space for improvement in their teams and even themselves. They are open to suggestions, learning curves and new opportunities that can benefit the organisation by up and cross-skilling respectively.

They also seek to gain an understanding of the advantages of new HR research findings and link them to the current trends in the HR industry, for example, the hybrid working arrangement post-Covid era which is now strongly favoured by the millennials. All of this can help leaders to develop a strong understanding of HR functions, methods, strategies, procedures, and policies.

Conclusion

Modern-day HR managers face unique challenges and opportunities in the workplace. There are skills valuable to HR across industries and regions due to their relevance and demand in today’s workforce. Situations, norms and trends are some of the factors to why HR managers should upskill themselves to make them stay competitive in their field.

Outsource your HR and payroll administrative operations with Ledgen as part of your HR strategy to streamline operations and focus on core value-added matters to the organisation. Get started with an outsourcing team that understands your business.

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On 30th March 2022, the Employment Bill (Amendment) 2021, was passed in the Dewan Negara, Malaysia’s upper house of parliament. The amendments introduced in the Bill are driven by Malaysia’s commitment to comply with international labour law standards and practices required under the Trans-Pacific Partnership, the Malaysia-United States Labour Consistency Plan and the International Labour Organisation (ILO).

The amendments will tentatively come into force on 1st January 2023 and covers employees who are earning up to RM4,000 per month. The following are some of the key amendments that every Malaysian employers should take note:

1. Extension of Maternity Leave

A welcome update to the Employment Act is the increased entitlement of paid maternity leave for working mothers who are recovering from post-delivery from sixty (60) days to ninety-eight (98) days to recuperate. This extension is seen as a very welcoming benefit to working mothers who need time to adjust and adapt after delivering a baby. An extended maternity leave will provide plenty of time for the woman to care for her newborn in the first critical months of its infancy. Once well-adjusted, she will come back to work with less worry and stress.

2. Restriction on Termination of Pregnant Employees

The new amendments also include more protection for pregnant female employees, as well as those suffering from pregnancy related illnesses. From 1st January 2023, it will be an offence under the Employment Act 1955 for employers to terminate (or give notice of termination) to this category of employees, except on the grounds of misconduct, wilful breach of a condition of the employment contract, or closure of the employer’s business.

The employer bears the burden of proving that the female employee’s termination from employment is not based on the grounds of her pregnancy or an illness arising out of her pregnancy.

3. Introduction of Paternity Leave

The 2022 Amendment will now see, for the first time, a provision for paid paternity leave. This is a landmark moment in Malaysian employment legislation, one that will see married male employees entitled to seven (7) days of consecutive paid paternity leave.

There are a lot of findings that suggest the advantages and benefits of paternity leave for the business. Not only will it redistribute family responsibilities more equally for both genders, but it will also improve employee morale and productivity in the long run.

4. Awareness on Sexual Harassment

In Section 81H of the new amendment, employers will be required to display a notice to raise awareness on sexual awareness in the workplace. This notice must be placed in a conspicuous location and must be displayed at all times.

This new section was introduced with the aim to raise awareness on sexual harassment in the workplace, a contentious issue that has been taken more seriously in many work settings across the world.

5. Employment of Foreign Workers

Previously, employers who hire foreign workers were required to inform the Director-General of new foreign employees along with details of conditions of employment within fourteen (14) days of being employed.

With the 2022 amendment, however, employers are now required to obtain prior approval from the Director-General in order to hire foreign employees. They must also notify the Director-General within thirty (30) days, if or when foreign employees are terminated.

6. Flexible Working Arrangements (FWA)

The COVID-19 pandemic has changed the working landscape for employees. During the pandemic, employees were required to work from home for more than two years. Currently, some organisations have adopted a hybrid model wherein employees work from office in rotation for a limited number of days weekly.

With this new landscape, the Employment Act 1955 has been amended to provide a crucial section that addresses hybrid working arrangements. This is particularly important for the post-pandemic business landscape, with FWA and other important work models now becoming more common.

Employees can now apply in writing for FWA from their employers. Employers must then respond with a decision within sixty (60) days, and in cases of rejection, reasons must be given to the employees.

7. Maximum Working Hours

Previously, employees in Malaysia had a maximum number of working hours of forty-eight (48) per week – which is equal to eight (8) hours a day for six (6) day weeks. From 1st January 2023, this maximum number has changed to forty-five (45) hours per week. The explanation behind this change is to safeguard the welfare of employees in line with the International Labour Organisation (ILO) Convention.

Conclusion

The amended Employment Act of 1955 Malaysia now offers greater protection to a much larger category of workers irrespective of wages or occupation in Malaysia and this direction is in line with almost all developed and modern economies in the world. Since the date of the new amended Employment Act 1955 is just a few months away, employers should review and revise their employees’ employment contracts and company policies in the HR Handbook to ensure proper compliance to the above mentioned changes and the Revised First Schedule.

Work with Ledgen’s team of HR and payroll professionals to comply with the latest local jurisdiction on employment, visas, and more. With presence in key regions in Malaysia & Singapore, our capabilities extend beyond borders to provide value-added services to your organisation.

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The company secretary (CoSec) function is a role critical to the company’s overall organisational structure. A CoSec ensures that the business is compliant with local corporate laws, maintains the statutory registers and ensures timely filings of critical statutory documents such as annual financial statements and annual reports.

The CoSec is also responsible to ensure that the company details are up-to-date and notifying local authorities of any changes in relation to the company’s details. Additionally, CoSec needs to be consulted on all matters relating to the incorporation of the company.

When it comes to outsourcing, certain industries are more commonly known to outsource their CoSec function, such as companies in the technology and financial services industry. It may also include multinational companies (MNC) that are setting up branches or satellite offices in new countries with the intent to keep their in-house headcount to a minimum.

Nevertheless, every organisation should consider outsourcing a company secretary for various reasons, be it cost, efficiency, or expertise. How would outsourcing benefit the company? Let’s take a look.

1. Cost Consideration

A CoSec is a highly specialised role, making them high in demand and rather expensive for a full-time hire. This will especially affect smaller or newer businesses as they would need to keep their cost structure low. Hiring and retaining an in-house CoSec would also include other costs such as recruitment costs, EPF contribution, insurance and other staff benefits. Hence, the actual cost spent on in-house CoSec staff goes beyond the gross salary provided to the staff.

Outsourcing, on the other hand, allows companies to enjoy the benefit of having a qualified CoSec and paying only for their professional capabilities. By outsourcing, companies can save costs without risking quality and compliance. This includes savings from infrastructure, employment taxes and other overhead costs.

2. Service Levels

By outsourcing the CoSec function, you would be able to set and agree on service levels and standards. It is true that hiring an in-house CoSec allows the organisation to set the standards of excellence for tasks and projects. However, that also means running the risk of those standards dropping if the existing CoSec leaves. It would take a few months or even up to a year to find a replacement and to train the new staff to be able to match the high levels of excellence that the role demands.

On the other hand, outsourcing allows for greater flexibility in service levels and ease of ramping up if the organisation is undergoing significant growth activities, e.g. Mergers & Acquisitions (M&A).

In an M&A exercise, the CoSec is responsible to provide corporate restructuring and governance advice, on top of timely submission of documents such as the Memorandum and Articles of Association. Given that most M&A are time-sensitive projects, the service levels and turnaround time needs to be fast and reliable. This clearly shows that outsourcing allows the organisation to accelerate and decelerate depending on the business needs and priorities.

3. Efficiency and Reliability

Outsourcing can further ensure the efficiency and reliability of the CoSec function. Efficiency and reliability in this context would be defined as being able to complete all tasks in a timely and effective manner while ensuring the CoSec is credible in handling high-stressful projects such as an M&A.

Hiring would require the organisation to find the right person for the job, which can take up substantial time to recruit. This could range from weeks to months and even up to a year. Reliability is also a concern as there is no guarantee that the hired staff would have both the job fit and cultural fit for the company. This concern is remedied by outsourcing the CoSec role. Outsourcing offers the benefit of an equally capable replacement if the existing CoSec leaves. It also offers continuity as the new CoSec can immediately fit into the role.

In addition, working with an outsourced CoSec ensures reliable and timely service such as filing relevant paperwork within deadlines, preparing resolutions of directors and shareholders, and updating statutory registers and minute books.

Ledgen’s team of outsourced company secretaries has years of experience across multiple industries and hence is able to provide best-in-class service to all clients. Clients are able to leverage the experience of an outsourced CoSec to seek a more balanced viewpoint in resolving certain governance issues due to the greater exposure of an outsourced CoSec to various scenarios and situations.

4. Geographical Considerations

Organisations that have a business presence but not an office presence in the home country may find it tough to employ a CoSec. The organisation might also risk being out of tune with the local market talent trends and thus, be unable to attract the right talent.

Outsourcing eliminates that and offers the organisation localised market knowledge due to the outsourcing company being specialised in that geographical area. It also allows for the company to leverage off market insights and have the peace of mind that the outsourcing company has the right staff with the required expertise. Ledgen has a presence in three (3) key Asian regions and thus, is suitable for businesses looking to expand.

5. Industrial Expertise

Hiring may allow the organisation to bring in new talent and be part of the company’s future. However, in the short term, they may be lacking the industrial expertise needed to hit the ground running. CoSec is a critical and time-sensitive role that requires the staff to be able to do just that. Outsourcing mitigates that as the service provider ensures all personnel are highly skilled and have hands-on experience in a particular industry. In addition, it allows for a greater pool of knowledge sharing due to exposure to other industries.

Conclusion

There are great advantages and benefits to be reaped when you work with the right CoSec partner. The cons of outsourcing can be mitigated by choosing the right partner who has a good understanding of the field.

Ledgen is an efficient and experienced outsourcing company secretarial services provider in Singapore, Hong Kong and Malaysia. We have dealt with multiple clientele from different industries by ensuring that their CoSec matters are well-managed.

One of our unique differentiation from other firms is our ability to work in a short notice period so that you can receive a quick turnaround time. Our CoSec professionals are ready to advise you on all CoSec-related matters to ensure regulatory compliance is met.

Get in touch with our experts today.

The accounting and financial functions of a company are inherently vital for business continuity. Whether it is done by someone hired specifically for this role, or executed by the business owners themselves, there is no denying that someone has to do these unassuming but essential tasks.

Despite being essential, accounting can be tedious and repetitive every month and quarter. Since it is not going anywhere though, we might as well do it right and systematically. So, here are some ways to improve your accounting process and update your books in time.

1. Create an Accounting Plan Early

At the start of a fiscal year, it is helpful to have a plan on what your financial goals and accounting activities are. Planning early and aligning with the rest of the team ensures that everyone is on the same page. List out important events, due dates, or schedule big expenses so that you can be prepared.

2. Set a Reminder to Prepare Monthly Statements on Time

Monthly financial statements such as bank reconciliation and profit & loss statements (P&L) are some of the most important documents to prepare on time. Bank reconciliation should be done at the end of every fiscal month to tally up your accounts payable and receivable. This is opposed to only reconciling upon management or auditor’s request, which just spells trouble for the company.

The same can be said for the profit & loss statement (P&L). Timely preparation would ensure accuracy and save you a lot of hassle during auditing later on. You can prepare an annual calendar with the internal finance team to have your bank reconciliation and P&L statements prepared on agreed-upon monthly reporting deadlines.

3. Specify a Cut-Off Date for All Claims Submissions

With many moving parts of a business operation, it is only natural to have a lot of receipts and invoices that need to be filed and processed. You can minimise errors and last-minute work by setting a cut-off date for all reimbursements and invoice payable submissions. Inform your team and all employees so everyone knows when to submit their claims on time. This will also ensure that no receipts are left unaccounted for.

4. Chase Your Receivables

Never take your account receivables for granted. As the primary source of incoming cash flow for a business, accounts receivables determine the business’s ability to persevere. Getting paid is, therefore, another important aspect that you need to monitor closely besides driving top-line revenue.

To better ensure that your clients will pay you on time, set up policies and reminders about your payment structure. Having a good relationship with the customers will also lessen disputes and ease communication. Then, you can proactively follow up on those outstanding invoices from clients without any hassle.

5. Pay Your Taxes on Time

Everyone knows that you should pay your taxes on time. More so for companies that would otherwise need to pay hefty fines and penalties for late payments. Thus, you have to be alert to your local tax submission due dates.

For example, the final date to submit a bi-monthly Sales & Service Tax (SST) filing in Malaysia is the last day of the following month. Timely tax payment ensures that your company avoids unnecessary costs, as well as keeps your records clean and accurate for the Inland Revenue’s tax audit later on.

6. Continuously Learn & Improve

As a key function of a company, accounting needs to keep up with changing regulations and presentation standards, workflow, and even company values. Accounting is not just transactional bookkeeping. Instead, it provides the company with valuable financial insights and interpretation of the vast numbers and ledgers that can aid management decision-making. Hence, your company’s accounting processes can always be revised, upgraded and improved upon so your company’s financial data stays relevant.

7. Partner Up with a Professional

Working with a certified chartered accountant can give a great advantage to your business. These trained professionals can provide you with helpful, practical advice and expertise in accounting best practices.

You could also consider outsourcing your accounting functions to trained accountants and getting it done the right way. Outsourcing takes off the workload for you while you focus on core business activities and help your team achieve their goals. Done right, outsourcing improves accounting efficiency and promotes compliance through independent checks and balances.

Conclusion

As mentioned before, accounting is a critical part of every business. It is very important to stick to a plan, and budget, and get things done before their deadlines. Timely and accurate accounting will result in a company’s records looking impeccable. The benefits of this will only compound over the years and assist the business further.

The team at Ledgen consists of chartered accountants who are well-versed in local regulations, tax filing, accounts payable and receivables, and the maintenance of accounts that meets compliance standards and audit requirements. Our team is ready to help with a wide range of professional accounting services.

Get started with better accounting efficiency today.