Management and control is the key factor used to ascertain the residence status of a company in Malaysia.
❑ The management and control refers to the controlling authority which determines the policies to be followed by the company.
❑ The management and control is considered to be exercised where the directors meet to conduct the company’s business / affairs irrespective of where the company might be incorporated.
❑ The management and control of a business of a company would depend upon how the business is managed.
❑ The location of the trading activities or the place of physical operations may not necessarily be the place of management and control.
❑ The appointment of a local director or local board of directors in Malaysia does not determine the residence status of a company.
❑ Control by the shareholders is not relevant for the determination of the management and control as share-holders exercise their power over the company by virtue of their voting power at formal meetings of shareholders
❑ The residence status of a director does not determine the residence status of a company.