According to section 196 (1) of the Companies Act 2016 (CA 2016), every private company must have at least one director who shall be ordinarily resident in Malaysia by having a principal place of residence within Malaysia, whereas a public company is required to have a minimum of two directors.

Minimum requirements for being a director;

• A natural person;
• At least 18 years old (no maximum age);
• Not unsound mind;
• Not disqualified under the CA 2016.

The Companies Act 2016 does not require a director to have any specific academic or professional qualification. Nevertheless, section 213(2) provides that:

A director of a company shall exercise reasonable care, skill, and diligence with:

1. The knowledge, skill, and experience which may reasonably be expected of a director having the same responsibilities; and
2. Any additional knowledge, skill, and experience which the director has.

Therefore, in Malaysia, a director can no longer escape liability because he/she lacked the knowledge, skill, and experience. A director, whether he is an executive or a non-executive director is now deemed to have the knowledge, skill, and experience which may reasonably be expected of a director having the same responsibilities.