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);
Forms of business structure in Malaysia
Corporate grouping under the Act
The person running the business before the business becomes a Company
Registration of a Company
The consequence of registring a Company
Director’s liability and personal liability in a Company
The role of a Company’s constitution
The liability of shareholders in a Company
The extend of the application of a Shareholders Agreement to the operation of the Company
The importance in dealing with person that has Company’s authority in agreements
How to ensure agreements entered by an unauthorised person continues to be blund with the Indoor Management Rule
Share issuance for a Company
The type and the legal impact of different share types in a Company
Complying and issuing the solvency test and the solvency statement
Dividend issuance
Company’s security for loans
The different types of charges to support loan security
Transferring business ownership in a Company (transfer of shares)
Transferring business ownership in a
Valid procedures to affect transfer of shares
Company upon death of a Shareholder (transmission of shares)
Binding and legal decision making proces of shareholders
Company Director’s role, removal, retirement, remuneration and rights
Board meetings and manner to make a decision
Director’s right to access Company’s information
Breach of duty by Director in Company
Impact of Directors who are in conflict of interest for transactions related to the Company as well as the duty to disclose
Director’s liability in Company’s insolvency
The obligation to keep reporting and registers of the Company in order
Closing down a Company via winding up
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.