Companies Act 1965 Flashcards
What is the Companies Act 1965?
It regulates the formation, registration, incorporation, management, and dissolution of companies in Malaysia.
What is Suruhanjaya Syarikat Malaysia? (SSM)
It is a corporate registry and regulatory authority that meets business needs through registration, information, regulation, and advice.
Name the two types of companies?
- A company limited by shares
- An unlimited company
Explain what is “a company limited by shares”.
A company formed on the principle of having the liability of its members limited by the memorandum to the amount on the shares respectively held by them.
This can be incorporated as:
- ) a private company (Sdn. Bhd.)
- Insurance brokers, financial advisers, and registered adjusters - ) a public company (Bhd.)
- Insurance companies and takaful operators
Explain what is “an unlimited company”.
Similar to “limited by shares”; however, the liability of its members must be stated in the Memorandum of Association as ‘unlimited’.
What happens in Annual Returns under “Main Provisions of the Companies Act 1965”?
The director’s report will display all the profits, losses, balance sheet, and the state of the company’s affairs at the end of each financial year.
If It is a “holding company” then all state of affairs and subsidiaries will be under the report of the holding company.
What is a Statutory Report?
Shares allocated and the cash received in respect of those shares and the receipts and payments on capital account to be examined and reported upon by the auditors.
What does “Dissolution of a Company” mean?
The assets of a company are collected and realized. These are used to discharge the company’s debt and liabilities and the remaining balance will be distributed to all contributors according to their entitlement.
