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Navigating the Companies Act 2016 for SMEs

 

Overview   |   Authors   |   Table of Contents
Navigating the Companies Act 2016 for SMEs
Oct 2018
DUO (Paperback + ProView)


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Small and medium enterprises (SMEs) play a major part in the Malaysian economy. In recent years, the number of SMEs operating as private limited companies has risen significantly. These companies are now regulated by the new Companies Act 2016 (CA 2016) which has brought in major changes to company law in Malaysia. This book has been specially prepared to guide SMEs which are private limited companies and exempt private companies in navigating the regulatory requirements under the CA 2016.

Written in simple and engaging style, this book is a useful guide for business owners, company secretaries and entrepreneurs intending to start a business.
 
Key issues considered in the four parts of the book are as follows.
Part 1 – Introduction
Types of business entities available to SMEs
Special emphasis on private limited companies and exempt private companies
Concept of corporate personality and its benefits

Part 2 – Administration and management
One-member one-director private companies
Capacity and powers of a company
Requirement for a constitution
Option for the appointment of an auditor
Formation and execution of corporate contracts
Procedures for a company to contract with its promoter and director
Contracts requiring members’ approval
Duty imposed on an officer as a fiduciary
Effect of indemnity given by a company to its officer
 
Part 3 – Sources of financing
Protection of investors
Procedure for issuance of new shares, classes of shares, class rights and transfer of shares
Rules of capital maintenance
Company’s power to borrow
Usage of assets as security, with special emphasis on intellectual property
 
Part 4 – Leveraging on ICT
Usage of ICT in lodgement of documents with Registrar of Companies
Employing ICT in conducting company meetings
 
Appendix – Overview of Differences between CA 1965 and CA 2016
 

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