Can an undischarged bankrupt or someone with bad CTOS open a company?
An undischarged bankrupt cannot act as a director without leave of the court or the Director General of Insolvency — that is Section 198 of the Companies Act 2016. A poor CTOS or CCRIS record alone does not legally bar you from being a director or shareholder, but it will make corporate bank account opening and financing harder.
Sources: Companies Act 2016 s.198
Also asked as: bankrupt director malaysia; muflis boleh jadi pengarah; blacklisted can register company; ctos bad can open sdn bhd; ccris problem director.
If bankruptcy or disqualification is in the picture, tell us before filing — appointing a disqualified director is an offence, and there are lawful structures (for example, holding shares while another qualified person directs) that we can assess case by case.
Key facts
- s.198 CA2016: undischarged bankrupts barred without leave
- Bad credit ≠ legal bar, but affects banking
Call +60 10-383 5988 (a licensed secretary replies within one working hour (Mon–Fri 8:30am–5:30pm MYT; outside hours, first thing next working day)) or walk in at J-3A-15, Solaris Mont Kiara.