# Circulating and Lodging Financial Statements: The Two Deadlines

> Why a Sdn Bhd has two financial statement deadlines rather than one, how the second is triggered by the first, and how to work a real financial year end through both.

- Category: company-secretary
- Language: en
- Status: published
- Updated: 2026-07-20
- Canonical: https://negaraku.md/en/company-secretary/financial-statements-lodgement

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Ask a Malaysian director when their accounts are due at SSM and you will get one
of two answers: "six months after year end" or "seven months after year end."
Both are wrong, because the question has two answers, and the second one depends
on when you did the first.

Almost every competitor page states one deadline and omits the other. That
omission is how companies file late while believing they were early.

## The two clocks

**Clock one — circulation.** Under s.258(1)(a) of the Companies Act 2016, a
private company must circulate its financial statements and reports **within six
months of its financial year end**. Circulation means what s.257(1) says it
means: sending a copy to every member, every person entitled to receive notice
of general meetings, every auditor, and every debenture holder who requests one,
at the last known address provided to the company.

**Clock two — lodgement.** Under s.259(1)(a), the company must lodge those
financial statements with the Registrar **within 30 days from the date they are
circulated to members under section 258**.

Clock two does not start at financial year end. It starts on the day clock one
stops. They run in series.

## Why this catches people

The consequence is counter-intuitive: **circulating early makes your lodgement
deadline earlier.**

A director who gets the audit signed off in month four, circulates immediately,
and then assumes there is still a "six-month rule" protecting them has just
given themselves a month-five deadline without noticing.

SSM's own guidance illustrates the mechanic. In Part M of its FAQ, SSM works
through a company that circulated three years of overdue financial statements on
30 June 2017 and a fourth set on 30 November 2017. The result was two separate
lodgement deadlines in the same year — before 30 July and before 30 December —
"due to the company circulating the FS twice in 2017." The lodgement date
attaches to the circulation event, every time.

## A worked example: FYE 31 December 2025

| Step | Rule | Date |
| --- | --- | --- |
| Financial year end | — | 31 December 2025 |
| Last day to circulate | s.258(1)(a), six months | 30 June 2026 |
| Last day to lodge, if circulated on the last day | s.259(1)(a), 30 days | 30 July 2026 |

Now change one variable. The audit finishes early and the directors circulate on
**15 April 2026**:

| Step | Date |
| --- | --- |
| Circulation | 15 April 2026 |
| Last day to lodge | 15 May 2026 |

Same financial year, same company, lodgement deadline **two and a half months
earlier**. Nothing about 30 July 2026 survives once you circulate in April.

The outer limit — roughly seven months after year end — is only available to a
company that circulates on the very last permitted day. That is a legitimate
strategy, but it leaves no margin at all on the circulation step, which is the
one with the harder external dependency (the auditor).

## Public companies run on a different trigger

For a public company the sequence is anchored to the AGM, not to circulation.

- Circulate **at least 21 days before** the AGM — s.258(1)(b). The period can be
  shortened only if all members entitled to attend and vote agree, under
  s.258(2).
- Hold the AGM **within six months of financial year end**, and not more than
  15 months after the last AGM — s.340(2).
- Lodge **within 30 days from the AGM** — s.259(1)(b).

So for a public company, circulating early does not move the lodgement deadline
at all. The meeting does.

## What actually gets lodged

The lodgement is not just the accounts. Depending on the company:

- **Audited company**: the audited financial statements and reports.
- **Audit-exempt private company**: unaudited financial statements complying
  with approved accounting standards under s.244(1), together with the
  directors' report, statement by directors, statutory declaration, the
  lodgements required under ss.251 and 252, and the audit exemption certificate
  required by Practice Directive 10/2024. See
  [unaudited financial statements](/en/company-secretary/unaudited-financial-statements).
- **Exempt private company electing the s.260 route**: a certificate as to EPC
  status, signed by a director, the auditor and the secretary, lodged in lieu of
  the s.259(1)(a) requirement within 30 days from circulation.

All amounts must be quoted in Malaysian currency, and anything in a language
other than Bahasa Malaysia or English must be accompanied by a certified
translation — s.259(1)(c).

Since Phase 3 of the MBRS 2.0 rollout on 1 June 2025, audited financial
statements under the Companies Act 2016 must be lodged in XBRL through
[MBRS 2.0](/en/company-secretary/mbrs-2). Unaudited financial statements came in
earlier, under Phase 1 on 1 December 2024.

## What it costs to be late

Two separate consequences, and they are not alternatives.

The **administrative late lodgement penalty** under paragraph 17 of Practice
Directive 1/2017 (revised 1 October 2024) runs from RM50 to RM200 for a private
company depending on the length of delay, and RM150 to RM500 for a public or
foreign company. The Registrar retains a discretion under paragraph 18 to remit
that fee wholly or partly where the omission was accidental or inadvertent, or
where it is just and equitable to do so.

The **statutory offence** is larger and independent. Under s.259(3), *every
officer* who contravenes the lodgement duty commits an offence and is liable on
conviction to a fine not exceeding RM50,000, and for a continuing offence a
further fine not exceeding RM1,000 for each day. The circulation failure carries
its own offence under s.258(3) — up to RM50,000, plus up to RM500 a day.

Note the wording difference. s.258(3) catches "the company and every officer".
s.259(3) catches "every officer" — the personal exposure is the point.

## If you are going to miss it

Apply for an extension **before the period expires**, not after. Section 259(2)
only empowers the Registrar to extend "if an application for extension is made
before the expiry of the period referred to in paragraph 1(a) or (b)". Practice
Note 3/2018 adds a lead time: a private company must submit at least seven days
before the last day of the relevant period.

Full mechanics are in
[applying for an extension of time](/en/company-secretary/extension-of-time-ssm).

## Common mistakes

- **Stating one deadline.** "Six months" describes circulation only. "Seven
  months" describes the best case for lodgement. Neither describes the rule.
- **Assuming early circulation banks time.** It spends it. The 30-day lodgement
  clock starts the day you circulate.
- **Treating the AGM as the trigger for a private company.** Private companies
  are not required to hold an AGM under the Companies Act 2016. Circulation is
  the trigger; a meeting is irrelevant unless the constitution imposes one.
- **Circulating a second set of accounts without recalculating.** Each
  circulation event generates its own 30-day lodgement deadline, as SSM's own
  Part M illustrations show.
- **Applying for an extension after the deadline lapses.** Section 259(2) has no
  retrospective operation.
- **Quoting only the RM50 late fee.** The officer-level exposure under s.259(3)
  is up to RM50,000 plus a daily continuing fine.

## What's next

Fix your circulation date deliberately rather than letting it fall out of the
audit timetable, because it is the date that sets everything downstream. Then
put both dates — circulation and lodgement — on the same calendar as your annual
return, which runs on a completely different trigger.

## Sources

- Companies Act 2016 (Act 777), updated text as at 1 August 2022 — sections 257 to 260 — https://www.ssm.com.my/Pages/Legal_Framework/Document/Companies%20Act%202016_Akta%20777_BI%20(1.8.2022).pdf (SSM)
- Companies Act 2016: Practice Note No. 3/2018 — Clarification on Application for Extension of Time — https://www.ssm.com.my/Pages/Legal_Framework/PDF%20Tab%205/pn_ss_609_2592_3404_eot.pdf (SSM)
- Part M — Annual Returns and Financial Reporting (SSM FAQ) — https://www.ssm.com.my/Pages/Legal_Framework/Document/PART%20M.pdf (SSM)
- Companies Act 2016: Practice Directive No. 1/2017 (Revised 1 October 2024) — https://www.ssm.com.my/Pages/Legal_Framework/Document/Practice%20Directive%201_2017%20(Revised)%201%20Oct%202024.pdf (SSM)

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