The Companies Act 2016 repealed the Companies Act 1965 andchanged the landscape of company law in Malaysia. The Companies Act2016 reformed almost all aspects of company law in Malaysia.
Required:
By referring to the Companies Act 2016, insert the correct sectionsin column (A) for each description in column B.
4
Column A Column B Example: Section 3 Corporation refers to any bodycorporate formed or incorporated or existing in Malaysia or outsideMalaysia.
Other than companies limited by guarantee, a company may / may nothas a constitution. A private company has notmore than 50shareholders.
Preference shares may be redeemed out of profit; a fresh issues ofshares or capital of company. All ordinary shares now carry no parvalue. The directors will make calls on unpaid shares at a fixeddate.
Any shareholders fail to pay any calls within stipulated time, thecompany has the right to forfeit the shares
A company should states in its constitution the voting rights ofdifferent classes of shares.
The company can only make a distribution to the shareholders out ofprofits if the company is solvent.
A prospectus can only be circulated after the prospectus has beenlodged with Registrar.
Shares can’t be allotted unless minimum subscription andapplication payable have been received.
A shareholder of company limited by shares has liability limited toany amount unpaid on a share held by him. A private company musthave at least one director.
Subsidiaries’ financial year end must coincide with the holdingcompany.
If any subsidiaries are not being consolidated, the directors ofthe company should disclose in notes the reason for not consolidatethe subsidiaries.
Annual general meeting should be held within 6 months after thefinancial year end. Every resolution should be kept for sevenyears. [
