Engineering Consultancy Practices Engineering Consultancy Practices

Section 7B has similarly been amended for multi-disciplinary services. The existing provisions in Section 7B already allow any person or bodies to have equity to a maximum of 30%. However the dispersion of the equity is somewhat complicated and has been simplified.

The Regulations have been amended to reflect the amendments to the REA. To comply with the amendments of Section 7A (Single Disciplinary Practice) and 7B (Multi Disciplinary Practice) of the REA; new regulations, Regulation 34A Paid up capital and Equity and 34B Composition of the Board of Directors have been inserted as follows;

"Regulation 34A Paid up capital and Equity

  1. A body corporate registered as an Engineering consultancy practice under section 7A of the Act shall have -
    1. a minimum paid up capital of fifty thousand ringgit;
    2. at least seventy percent of its share equity held by Professional Engineers with Practicing Certificate: and
    3. the remaining share equity may be held by -
      1. any person; or
      2. any body corporate; or
      3. any person and body corporate.
  2. A body corporate registered under Section 7B of the Act shall have
    1. a minimum paid up capital of one hundred and fifty thousand;
    2. at least sixty percent of its share equity held by Professional Engineers with Practising Certificate with combination of service comprising Architects or Professional Quantity Surveyors:
    3. minimum share of ten percent shall be held by the Professional Engineers with Practising Certificate; and
    4. the remaining share equity may be held by -
      1. any person; or
      2. any body corporate; or
      3. any person and body corporate."

Regulation 34A is illustrated in Figure 2.

Figure 2


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