Main things you need to know as a business owner on Companies Act 2016

Starting a business is a huge step.

And part of that step is to understand and get the right counsel to navigate the nitty gritty things that are not talked about in the public.

This is usually done by having the right professional legal counsel at your side.

In this article I intend to quickly gloss through the key topics that YOU NEED TO KNOW as a business owner in relation to the Companies Act 2016.

I’m going to make this into a list.

This would allow you to capture the overview idea of the topics that you need to cover before incorporating a Company as the legal entity for your business as well as to get you moving towards the right direction on the knowledge.

Without further ado here are the key topics that you need to know as a business owner (especially if you are a Sendirian Berhad) in relation to the Companies Act 2016 (Act);

1. Forms of business structure in Malaysia

2. Corporate grouping under the Act

3. The person running the business before the business becomes a Company

4. Registration of a Company

5. The consequence of registring a Company

6. Director’s liability and personal liability in a Company

7. The role of a Company’s constitution

8. The liability of shareholders in a Company

9. The extend of the application of a Shareholders Agreement to the operation of the Company

10. The importance in dealing with person that has Company’s authority in agreements

11. How to ensure agreements entered by an unauthorised person continues to be blund with the Indoor Management Rule

12. Share issuance for a Company

13. The type and the legal impact of different share types in a Company

14. Complying and issuing the solvency test and the solvency statement

15. Dividend issuance

16. Company’s security for loans

17. The different types of charges to support loan security

18. Transferring business ownership in a Company (transfer of shares)

19. Transferring business ownership in a

20. Valid procedures to affect transfer of shares

21. Company upon death of a Shareholder (transmission of shares)

22. Binding and legal decision making proces of shareholders

23. Company Director’s role, removal, retirement, remuneration and rights

24. Board meetings and manner to make a decision

25. Director’s right to access Company’s information

26. Breach of duty by Director in Company

27. Impact of Directors who are in conflict of interest for transactions related to the Company as well as the duty to disclose

28. Director’s liability in Company’s insolvency

29. The obligation to keep reporting and registers of the Company in order

30. Closing down a Company via winding up

31. Closing down a Company via dissolution and striking off

Sure seems a lot.

Incorporating and maintaining a company is no easy business.

Especially since taking a wrong turn can land you with fines and in some cases jail time.

Want to go deeper into these and would like to discuss things over coffee, feel free to click the contact button on this page and leave your contact detail. I would be happy to talk to you.

Tags:

• Business

• Corporate

• Startups

• Business

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