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A Disclosure Statement lets companies and individuals share important facts about their business dealings, financial status, or potential conflicts of interest. In Malaysia, these documents play a crucial role in maintaining transparency, especially under the Companies Act 2016 and Securities Commission guidelines.

Banks, property developers, and investment firms must provide these statements to protect consumers and investors. They detail everything from risks and fees to ownership structures and material relationships. For example, Malaysian property developers need to give buyers clear disclosures about development plans, while financial advisors must reveal their commissions and any conflicts when recommending investments.

Use a Disclosure Statement when launching financial products, selling property developments, or offering investment services in Malaysia. This document becomes essential before major transactions, like when banks introduce new deposit accounts or developers pre-sell residential units.

The timing often aligns with regulatory requirements - prepare it before client meetings, ahead of investment product launches, or when starting fundraising activities. Malaysian law requires these statements for IPOs, unit trust offerings, and property purchases. Companies also need them when seeking new investors, changing ownership structures, or introducing significant business changes that affect stakeholders.

• Financial Services Disclosures: Used by banks and investment firms to detail product risks, fees, and returns under Bank Negara Malaysia guidelines
• Property Development Disclosures: Required for residential projects, covering construction timelines, specifications, and buyer protections
• Corporate Transaction Disclosures: Used during mergers, acquisitions, or fundraising to reveal material information to stakeholders
• Securities Market Disclosures: Mandatory for public offerings and listings on Bursa Malaysia, detailing business risks and financial status
• Product Safety Disclosures: Common in consumer goods, detailing ingredients, warnings, and compliance with Malaysian safety standards

• Corporate Directors: Responsible for signing off on Disclosure Statements and ensuring accuracy of company information
• Legal Counsel: Draft and review statements to ensure compliance with Malaysian regulations and Securities Commission requirements
• Property Developers: Must provide detailed disclosures to buyers about development projects and payment terms
• Financial Institutions: Required to disclose product features, risks, and fees to customers under Bank Negara Malaysia guidelines
• Company Secretaries: Maintain and file disclosure documents, ensuring timely updates and regulatory compliance

• Identify Purpose: Determine if it's for financial products, property development, or corporate transactions under Malaysian law
• Gather Documents: Collect financial statements, ownership records, regulatory approvals, and relevant licenses
• List Material Facts: Document all significant risks, conflicts of interest, and business relationships
• Check Requirements: Review specific disclosure rules from relevant authorities like Bank Negara or Securities Commission
• Draft Clearly: Use our platform to generate a comprehensive statement that meets all legal requirements
• Internal Review: Have key stakeholders verify accuracy and completeness before finalizing

• Company Details: Full legal name, registration number, registered address, and business nature
• Risk Factors: Clear explanation of material risks, market conditions, and business challenges
• Financial Information: Current financial position, historical performance, and relevant projections
• Ownership Structure: Details of major shareholders, directors, and key management personnel
• Legal Compliance: Statements confirming adherence to Malaysian regulations and industry standards
• Declaration Section: Dated signatures of authorized representatives certifying information accuracy
• Governing Law: Explicit statement that Malaysian law governs the disclosure

A Disclosure Statement differs significantly from a Disclosure Agreement in several key aspects under Malaysian law. While both deal with information sharing, their purposes and legal implications vary substantially.

• Legal Nature: A Disclosure Statement is a one-way declaration of facts or information, while a Disclosure Agreement creates mutual obligations between parties
• Enforcement Mechanism: Statements primarily serve regulatory compliance and transparency purposes, whereas Agreements create legally binding contractual obligations
• Timing and Duration: Statements typically capture information at a specific point in time, while Agreements govern ongoing information sharing relationships
• Content Requirements: Statements focus on presenting factual information and risks, while Agreements outline terms, conditions, and consequences of breach
• Usage Context: Statements are common in financial services and property development, while Agreements are typically used in business partnerships and commercial transactions