In: Accounting
The Companies Act 2016 repealed the Companies Act 1965 and
changed the landscape of company law in Malaysia. The Companies Act
2016 reformed almost all aspects of company law in Malaysia.
Required:
By referring to the Companies Act 2016, insert the correct sections
in column (A) for each description in column B.
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Column A Column B Example: Section 3 Corporation refers to any body
corporate formed or incorporated or existing in Malaysia or outside
Malaysia.
Other than companies limited by guarantee, a company may / may not
has a constitution. A private company has notmore than 50
shareholders.
Preference shares may be redeemed out of profit; a fresh issues of
shares or capital of company. All ordinary shares now carry no par
value. The directors will make calls on unpaid shares at a fixed
date.
Any shareholders fail to pay any calls within stipulated time, the
company has the right to forfeit the shares
A company should states in its constitution the voting rights of
different classes of shares.
The company can only make a distribution to the shareholders out of
profits if the company is solvent.
A prospectus can only be circulated after the prospectus has been
lodged with Registrar.
Shares can’t be allotted unless minimum subscription and
application payable have been received.
A shareholder of company limited by shares has liability limited to
any amount unpaid on a share held by him. A private company must
have at least one director.
Subsidiaries’ financial year end must coincide with the holding
company.
If any subsidiaries are not being consolidated, the directors of
the company should disclose in notes the reason for not consolidate
the subsidiaries.
Annual general meeting should be held within 6 months after the
financial year end. Every resolution should be kept for seven
years. [
Section 3 Corporation refers to any body corporate formed or incorporated or existing in Malaysia or outside Malaysia Other than companies limited by guarantee, a company may / may not has a constitution | |
(s42(1)) | A private company has notmore than 50 shareholders. |
Section 72(4) | Preference shares may be redeemed out of profit |
Section 74 | a fresh issues of shares or capital of company |
Section 74 | All ordinary shares now carry no par value. |
Section 82 | The directors will make calls on unpaid shares at a fixed date |
Section 83 | Any shareholders fail to pay any calls within stipulated time, the company has the right to forfeit the shares |
Section 56 | A company should states in its constitution the voting rights of different classes of shares. |
Section 132 | The company can only make a distribution to the shareholders out of profits if the company is solvent. |
Section 154 | A prospectus can only be circulated after the prospectus has been lodged with Registrar. |
Section 76 | Shares can’t be allotted unless minimum subscription and application payable have been received. |
Section 10(1) | A shareholder of company limited by shares has liability limited to any amount unpaid on a share held by him. |
Section 9(b) | A private company must have at least one director. |
Section 250 | Subsidiaries’ financial year end must coincide with the holding company. |
If any subsidiaries are not being consolidated, the directors of the company should disclose in notes the reason for not consolidate the subsidiaries. | |
Section 340 | Annual general meeting should be held within 6 months after the financial year end. Every resolution should be kept for seven years |