COMPANIES ACT 2016  
“guarantor corporation”, in relation to a borrowing corporation, means a corporation that has guaranteed or has agreed to guarantee the repayment of any money received or to be received by the borrowing corporation in response to an invitation to the public to subscribe for or purchase debentures of the borrowing corporation; 

A guarantor corporation is a corporation that undertakes to guarantee the repayment of money raised by a borrowing corporation through the public issuance of debentures.
The guarantee provides additional security to investors by ensuring that if the borrowing corporation fails to repay the principal, interest, or other amounts due under the debentures, the guarantor corporation will be responsible for fulfilling those obligations in accordance with the terms of the guarantee.
The definition includes both:

• A corporation that has already provided a guarantee; and
• A corporation that has agreed to provide a guarantee in the future.

Relationship with a Borrowing Corporation
A guarantor corporation exists only in relation to a borrowing corporation.
The relationship typically involves:

• Borrowing Corporation – Issues debentures to raise funds from the public.
• Guarantor Corporation – Guarantees the repayment obligations of the borrowing corporation.
• Debenture Holders – Investors who subscribe for or purchase the debentures.

This arrangement enhances investor confidence by providing an additional source of repayment if the borrowing corporation defaults. Key Characteristics of a Guarantor Corporation
A guarantor corporation generally:

• Is a separate legal entity from the borrowing corporation;
• Provides a legally enforceable guarantee of repayment;
• May guarantee the principal amount, interest, or both, depending on the guarantee agreement;
• Assumes liability if the borrowing corporation fails to perform its repayment obligations; and
• May be a parent company, subsidiary, related corporation, or another corporation willing to provide the guarantee.

Purpose of a Corporate Guarantee
A corporate guarantee is intended to:

• Increase investor confidence;
• Enhance the creditworthiness of the borrowing corporation;
• Improve the marketability of the debentures;
• Reduce financing risk for investors; and
• Enable the borrowing corporation to obtain financing on more favourable terms.

Practical Examples
Example 1 – Parent Company Guarantee
ABC Berhad issues RM100 million in debentures to the public.
Its parent company, XYZ Holdings Berhad, guarantees repayment of the principal and interest should ABC Berhad default.
XYZ Holdings Berhad is the guarantor corporation. Example 2 – Future Guarantee
A corporation enters into an agreement stating that it will guarantee the repayment of debentures once they are issued.
Even though the guarantee has not yet taken effect, the corporation falls within the statutory definition because it has agreed to guarantee the repayment. Example 3 – Default by Borrowing Corporation
DEF Berhad issues debentures to investors.
DEF Berhad later becomes unable to repay the debenture holders.
Under the guarantee agreement, GHI Holdings Berhad must satisfy the repayment obligations.
GHI Holdings Berhad acts as the guarantor corporation. Responsibilities of a Guarantor Corporation
A guarantor corporation may be responsible for:

• Honouring the guarantee upon the borrowing corporation's default;
• Complying with the terms of the guarantee agreement;
• Providing financial support where required;
• Making payments to debenture holders in accordance with the guarantee; and
• Fulfilling any disclosure or reporting obligations imposed by law or the debenture terms.

Compliance Requirements
Where a corporation acts as a guarantor corporation, it should ensure that:

• The guarantee is properly authorised by the appropriate corporate approvals;
• The guarantee agreement is legally valid and enforceable;
• Any required disclosures are made in accordance with the Companies Act 2016 and applicable securities laws;
• The corporation has the financial capacity to honour its obligations; and
• All statutory and contractual requirements relating to the guarantee are complied with.

Importance
The concept of a guarantor corporation plays an important role in corporate financing by strengthening the security of public debt offerings. By guaranteeing the repayment obligations of a borrowing corporation, the guarantor corporation provides additional protection to debenture holders, enhances investor confidence, and facilitates access to capital markets. This mechanism contributes to a more stable and reliable corporate financing environment under the Companies Act 2016.
  

《2016 年公司法》

“担保公司”（Guarantor Corporation） 就借款公司（Borrowing Corporation）而言，是指已为或同意为借款公司因邀请公众认购或购买其债权证（Debentures）所取得或将取得的款项偿还责任提供担保的公司（Corporation）。

实务说明（Practical Explanation）

担保公司（Guarantor Corporation） 是指为借款公司透过向公众发行**债权证（Debentures）**筹集资金时所承担的还款责任提供担保的公司。

该担保为投资者提供额外保障。若借款公司未能依照债权证条款偿还本金、利息或其他应付款项，担保公司须根据担保协议承担相应责任，并履行有关偿还义务。

根据《2016 年公司法》，担保公司的定义包括：

• **已经提供担保的公司；**以及
• 已同意于未来提供担保的公司。

因此，即使担保责任尚未正式生效，只要公司已承诺提供担保，亦属于法定定义下的担保公司。

与借款公司的关系（Relationship with a Borrowing Corporation）

担保公司的存在，是**基于借款公司（Borrowing Corporation）**而产生。

一般涉及以下三方关系：

• 借款公司（Borrowing Corporation）：透过向公众发行债权证筹集资金；
• 担保公司（Guarantor Corporation）：保证借款公司履行债权证项下的偿还责任；
• 债权证持有人（Debenture Holders）：认购或购买债权证的投资者。

此安排可于借款公司违约时，为投资者提供额外的偿还来源，从而提升市场及投资者信心。

担保公司的主要特点（Key Characteristics of a Guarantor Corporation）

担保公司一般具有以下特点：

• 属于独立于借款公司的法人实体；
• 提供具有法律约束力的偿还保证；
• 可根据担保协议，为本金、利息或两者同时提供担保；
• 当借款公司未能履行偿还责任时，须承担相应法律责任；以及
• 可以是母公司（Parent Company）、子公司（Subsidiary）、关联公司（Related Corporation）或其他愿意提供担保的公司。

公司担保的目的（Purpose of a Corporate Guarantee）

公司提供担保的主要目的包括：

• 提高投资者信心；
• 增强借款公司的信用等级及融资能力；
• 提升债权证对投资者的吸引力；
• 降低投资者承担的融资风险；以及
• 协助借款公司以更有利的条件取得融资。

实务示例（Practical Examples）

例子一：母公司提供担保（Parent Company Guarantee）

ABC Berhad 向公众发行总值 RM100 百万的债权证。

其母公司 XYZ Holdings Berhad 承诺，如 ABC Berhad 未能偿还债权证本金及利息，将负责履行相关偿还责任。

因此，XYZ Holdings Berhad 属于担保公司（Guarantor Corporation）。

例子二：未来担保（Future Guarantee）

某公司签订协议，同意于债权证正式发行后，为有关债权证提供偿还担保。

虽然担保责任尚未正式生效，但由于该公司已承诺提供担保，因此仍属于《2016 年公司法》所定义的担保公司。

例子三：借款公司违约（Default by Borrowing Corporation）

DEF Berhad 向公众发行债权证。

其后，DEF Berhad 因财务困难未能偿还债权证持有人。

根据担保协议，GHI Holdings Berhad 须代为履行偿还责任。

因此，GHI Holdings Berhad 即为该债权证发行的担保公司。

担保公司的责任（Responsibilities of a Guarantor Corporation）

担保公司一般可能须承担以下责任：

• 当借款公司违约时履行担保责任；
• 遵守担保协议所载的各项条款；
• 于有需要时提供财务支持；
• 根据担保协议向债权证持有人支付应付款项；以及
• 履行法律或债权证条款规定的资料披露及申报责任。

合规要求（Compliance Requirements）

公司作为担保公司时，应确保：

• 担保已获得适当的公司批准程序（Corporate Approvals）；
• 担保协议具备法律效力并可依法执行；
• 根据《2016 年公司法》及适用证券法规定作出所需披露；
• 公司具有足够财务能力履行担保责任；以及
• 遵守所有与担保有关的法定及合约责任。

重要性（Importance）

担保公司（Guarantor Corporation） 是企业融资制度中的重要组成部分，对公开发行债权证具有关键作用。

其重要性包括：

• 为债权证持有人提供额外的偿还保障；
• 提升投资者对债权证发行的信心；
• 增强借款公司的融资能力及信用评级；
• 协助企业更容易进入资本市场筹集资金；以及
• 建立更稳定、安全及可靠的企业融资环境。

透过担保公司的制度，《2016 年公司法》进一步加强了公开债务融资的保障机制，在维护投资者权益、促进资本市场发展及提升企业融资效率方面发挥重要作用.

Based in Kuala Lumpur, Malaysia, DSA & KW FONG offers one-stop corporate services for both local and international clients, making business registration to operations seamless. We provide strong support to help entrepreneurs thrive in the dynamic market.

Posted by DSA Corporate Secretarial Services Sdn Bhd on 16 Jul 26