Company Law

DPA 30083

company law

SITI ZUBAIDAH NUR AZIYATI

Volume

1

ABOUT THE WRITERS

Siti Zubaidah bt Md Hamin is a lecturer at Politeknik

Ungku Omar, Perak. She has more than 10 years of
teaching experience in commerce courses, such as
Fundamentals of Accounting, Business Mathematics,
Statistics, Computer Application in Accounting and 4
years experience in teaching Company Law

Nur Aziyati bt Yahya is a lecturer at Politeknik Ungku

Omar, Perak. She has more than 17 years of teaching
experience in commerce courses, such as Financial
Management, Business Mathematics, Computerized
Accounting System and 2 years experience in teaching
Company Law

First Edition 2021

All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted
in any form or by any means, electronic, photocopying,
recording or otherwise, without the prior written
permission of the owner.

Published by
POLITEKNIK UNGKU OMAR

PREFACE

The reference materials that follow the syllabus of the
educational institution make it very easy for students to
study. It will be quite challenging if there are no references,
especially since the Companies Act in Malaysia has been
changed from the Companies Act 1965 to the Companies Act

2016.
Previously, a book was written by Pn. Siti Salwa Jaafar and Pn.
Marliana Jamaluddin under the polytechnic series published
by Oxford Fajar, especially for polytechnic students. However,

it is quite challenging when students need to refer to the
Companies Act 2016 because the Companies Act has too much

information and many pages. Now that learning methods
have changed, all the references are in electronic form. This
e-book is an alternative for students to review the contents of

the Companies Act 2016 according to the topics in the
DPA30083 syllabus.

This e-book includes mind maps and related sections in the
Companies Act 2016 for topic 1 and topic 2. Exercises are also

provided.

CONTENTS

01 02

INTRODUCTION TO COMPANY INCORPORATION OF A
LAW COMPANY




Basic principles of company law, Procedures of
a company’s
limited liabilities, types of
incorporation, promoters and
company, parent companies and pre-incorporation, Constitution
their subsidiaries.

of a Company, including

doctrine of ultra vires and legal

effects of Constitution.

WHAT ARE THE Let's take a look..............
CONTENTS IN
CHAPTER 1?



LIST OF SECTION COMPANIES 2(1) Interpretation
ACT 2016
3 Definition of “corporation”
CHAPTER 1: 4 Definition of “subsidiary and
INTRODUCTION TO
COMPANY LAW holding company”

7 When corporations deemed to be

related to each other

9 Essential requirements of a company
12 Prohibition on companies limited

by guarantee with a share capital

13 Prohibition for unincorporated

associations, etc.

25(1) Name of company

26(1) Availability of name

LIST OF SECTION COMPANIES 40(1) Conversion from an unlimited
ACT 2016 41(1) company to a limited company

CHAPTER 1: Conversion from public companies
INTRODUCTION TO to private companies or private
COMPANY LAW companies to public companies.

42 Private companies
45 Definition of “subsidiary and

holding company”

192 Liability of members
196(1) Directors of company

435 Liability as contributories of

present and past members

Section 2 (1):

INTERPRETATION

“Accotmpoarnuyn”dmereaannsy acocrormespaponnydiinncgoprrpeovriaotuesdwurnitdteernthis ub4nceAb1d)pitnc,)eara“hgte)rapni;vsnraaysiioynoveAcrcyaucoccottsmoctmeiomowppwncmaparoanainp4tmsynayt2ypnaew;cayniopnhnrwynlicacivvo”hwhearimc;prthhtoeeaerasiacmdntonsmiemno—edttpdoaaciansaetyaaepsurlypeinvrddaipvettraireootarecbntoecyomoacpmtpaohprnreairvyneacysutopnemuodnmnceddoereimnnsrcgpeteachmntiyseionnt of
law; c“opmubplaicnyc;ompany” means a company other than a private

“afob)obts)rsohaAuewedeosAiegcyhrfcsnnroioobbcwerumccouhthinobdspaaidimcyeaitrnnohyncipeseoiynaoususnocnr,snerpoycdnddorouioo”ne,prtrtlraoymopMhtrrhoteeaaaearhharptladvaeonpoeteyslosdfdlioa—siofintipwnoiccatsr,uie;eeoostrhtdpfoseeyocfiiardtf,oitedesartytsohMtpysfeilhnaa,foaiclabccattesoeiyhasdpoestooyufiiraocnroo;inppaarroromtoiisgrnieroiecnnooipamtfoanhaltrdeyphrleace

Section 4

DEFINITION OF “SUBSIDIARY AND
HOLDING COMPANY”
Section 3:AcDonolyuibraaptuEbir)ossdtielariaeiFfdbbtagdncceeeyyteboylorIcaen)eeMacmnp)Nrcdbsnaoaofetamba)yoconrtdlrnonoadeIeatyraioodycpymytrnnTdtftyeeccoyeseescoriotiraidoIcaaobnoturshl“fotcecrOporhneacpprioilatrveiiuunoapopordGhetdrodirranNenpeapopyeart.sciuonoavnt—uMiooobrdrsetcenceralnierelOniifpuitgcontesoiosdiwsinmhts;oraroetaeFhtinaeurelseteiiee”tngtcsr;rgeatnhh;iiesnipnd“osoolduiyisrttirmofnbCiuhetrcfinlMtinrioyossoeeedarrOhtxdeoedAlpaeiirroisgcuydlnirRnaatatncsainbnindointcmaiyPerlgoietinpertomdhwosiaOyrnaeprtnirnnoaaiMrpstGyftunaRMtaaaeymrawleantzdan,AenlrynyaelfniiSemtystlotbaTrttitrsiaaowstaeeildaheIitno,tyriderpOaeylanloawodrtNriatnsog”ato
Ssuubbjseidcitartyoosfuabnsoetchteiornc(or3p)o,raatcioonr,pbourattoionnlyshifa—ll be deemed to

(1)
be a
a)the other corporation—
i.controls the composition of the board of directors of the

ciicii.oico.hrorpopnolotdrrsraaotmtlisoioonmrn;e,oertexhcatlnhuadhnianlhgf aoalffnyotfhpetahristesovufoettdihnseghsapohrewarecerapcoiatfpatitlhaoelf corporation; or
the
which consists

obof)tphtreherefeccrooerrnppocoreraastthiiooannr’esisss;auobsrsuibdsiaidryia.ry of any corporation which is that

(ocaphafo2obpbua)fn)pae)rvaotpsiencaiorFunpgoostocteprlehralherpeosesrotddarsorhioproabnrpeofeetnyowcctm’piwosataheuonenonirrasv’nrrpospteootpipoonbtsrhoarooemelihbnlovasrieatostirskcmordhaifooefeaaepornrsvpnfspm,ooutooudtirabfrnciharjfapbthoeseiatcyercraeiaihdottantronoygdahloarridsirasofafpientppfattcsghoothhtdhictnhaa(oiarothtterle1lmme)cfoodbrpoeti(tteralncohhleanodtoreec)ywerrrtwi(pefsosoc—cimit)rhnoorhseaa,errodltpptcaluooihentbotrresdoenaas;tttcfbdaohoiioeeoorrermeinnlytm.pechoxefaesrdeniotrtmciooisnheis

D E FCI NoHI TOnI tLODiNnI NuOGeF .C“..SO.UM..BP.S.AI.DN..IYA.”.R.Y...A N Dr(eoi4fonnbed)ctclecry)slhooeiu)iAnhaoiernnfi.dagb.bpnanronblcearyno)yyl(lroyhleecys)yr,st3ebfoitasanatotueiler)shtnhdnhnrohrbpaheiayeeytooeajoIbaarelnrfnrpdrynersiplfceacudeceishoeetaodteduaronsrarxturiephcrdotsirneohncopteieieneoonaodsoieferlxasntgrdmcerilprafryadheamiashaoiyossnritttrossefcriaceonhaicrhrloabimdpefAiaugesanepnlporeoasapcgaolfnooawdoabntotcrowarptwfcleeriodemshtprdte,iyrhwritaoseynoiarbmeneynweheaa,y(teetssxe;xirdnechexcuyhanoedirehfte)cetberrforb;rettioscrtcorhuaxhciriiohionsdosnsseienasnitealadeaidertnahdbsbrcecie(bnlahylcuceinieslsngtdaeoortsoa)brbirmcpeonebbfypy,aoortgpysloa,eerfmahttraaondaanteahpbhgnyrrnyahrtaiyaryenbynaitastcotoytytphihonsoproohhearesaototacilpirsrnd(uthfhtoeonsheecearasrotoooerpa)rrhmonscthort,cefcpiuoheribnscooooamselboyehodrnwrtusrrpeprap,idoveicoapoocldelifirrhornnnriroxoabatrayaprirdrisecatutpsro,yeteoiyoiwetotobaipreroonhrneectaoxefons,a;rnotfatenutwatuoiettoorhbnuhrrxochnetesosertiieedristeteridbhnraehssciapeecaoberoasirirtssfnlsorreyhhugfncavptci.aaboooidbahasotlsutrrlsalierapoisctbdpohaotnuieoitaefarbisbororhalrudadsnyroyteistiesfidro,soicisrnoiarahacneaaensnaroegpis—odyylaraxtlsrpcrbhbe.wdodiiyteetrerehcsyabdiwrcictes;easshainaaaosuhytbdninebasuldeoslaimlrscfisedbboasciseyaanyeorcottcnybefruhce,retearn,naihtretotnedyteedd as

CR EOLSRAPeTOcERtDAioTTOInOEN7AS:CDHE EME DT O
OTH ER

WHEN Section 9:
BE
ESSENTIAL REQUIREMENTS OF A
Aeaacc)bcoooi)hrctrroppi)toiofosittrriashaatnitethsaoirieootasinnhfhus—;eoibsurlsdbdciisdneoiigdearpirmcaoyorerymdaotfpotaiafoonnntybo.heteohrfheeaorlanlcdtoioetnrdhgpeotcrrooamtpioann;y COMPANY

A company shall have—

a)a name; members, having limited or unlimited liability for the
b)one or more
obligations of the company;
c)in the case of a company limited by shares, one or more shares;

and
d)one or more directors.

DBSSI TBHeIYAcORtGNEiUoOCAnNAR
12: ANIES P R O H IBITI OOSCNeIcFAOtTiRIoOUnNNSI1,N3EC:TOCR.
WITH ASS
COMP A P
ANTEE
ROHI PITAL O R A T E D
MITE
P
LI

Nfoobrlceimmwocemoiittdmpehaeadna,sbya,syohscrgaohurmaealplracbanaenyptiteael. uafnpopcducreNoeorropmrpnsrospaoaosiannssfeniyssttyooi,nsocfuughtinacanholtaldeelfriersobrmrsnyewotiiornfrthiorgetirsitpsomtaeAnhiernnactdacnltnnaof,eywotrorprwssrbo.tehurishnaisptetifnyeoedrsmasesd

Section 25 (1): Section 26 (1):

NAME OF COMPANY AVAILABILITY OF NAME

tcBhb)aae)Tebf)hofrbaofherrboraebarndvarna”aieampuvotpreniriuiaovltibotanmlifhtoiic“teeanBecacc“dhobSoodmcbmmd.”oprnpp;eam.aa”vnpn.niyaayy,tn,tisytohh,hneate“lhlwSweeodonwrnrdd.doBw“r“dBiSht“deehS.rn”thed;hanioreddira”irfniooalrnlo”twhoienrg: A name is available if it is not—
a)undesirable or unacceptable;
b)identical to an existing
company, corporation or
business;
c)identical to a name that is
being reserved under this Act;
or
d)a name of a kind that the
Minister has directed the

Registrar not to accept for
registration.

Section 40 (1): Section 41 (1): PUBLIC
NMSVcPucorobERmeAsmjeseppRpgoacNeailntscSunytiYttyfrIyiomoabOinrnatyTgyhaaNpinaOsncadnoosstnsasFevihApiccneRpaetgrrlilotOofaLlponotrsr,dIMiopaagcMetenaocenuwliaiIvAmanileTtllitirthmNesEeitritdoaDhenUtediaoNnCndtLOoI M ITED C ONVERSION FRO M IVATE
M PANY COMPANIES TO PR

COMPANIES OR PRIVATE
COMPANIES TO PUBLIC
C O COMPANIES.
C O

AplsorpdipveguacebtiflewiyciictncohgommatpnphaaenanypRypebrhgoyaipsvprtiianarsagtsreainaasglnhtaoaetrrsieacpteecicoaoinpafilttcraooelnsimtvosealuyrnstaciioomonnneava. enndrdtsthoalal

its name

Section 42:

PRIVATE COMPANIES

“t(abhc)1)a())bonc2r(efdhAecf)3aiearimtpofb)te)ncectsmAas)eggjooryoihpFisersnammspiaamohonstrpirspnrrattnhiieeaeanvhyrs;atrgnanihhae—nreahiytyosrossgedneeeltlt.hdddlothiaaepeomecrhotsurrlroidleeiutsdrtmasedpesesnhropodpruasaiafssrnsmwblnieumstlvyybhsahnboaaeoosatyssopartriehhrdif—esipoiaavbcassrfrloaeorulievsrtsymrbsachheewsptowaasheacaeulrhtalcnosenervcbytmhtiniaocein;ooepnmtgtnladcdpeh.ntone(ameyhnorn1yses.tpy)ildobtim;,neyerioonraacerernaeedpsmrofaieevfsraattohenee pdtrcabihav)(t)e)aeh4ctcaR)eaeeseasagWcsmsisoheseopmestsrerrpetceataiortofnaihyeshrpadh.aernvasiivneltflairtsfatitcheesyterhvcstnaeohhormaeaetprinccateoeanrhta,pyoiint—ctldsheaefeler;tscroo,orotmfhpietasncyosmhcaperaaenssye;dtthoatbeonasuch

Section 192:L(oI1bbA)e(liiigsn2aABasg))blthiIbmmiayignao)LTheiurmtncthtiamecnaIoehehcesso)rbTdmdetomea,fel)auhinpnatabYmrancnaasetnobeyadnesntcye—ircselyhmyioielttaeOrioaama,butlysiflminboaelapatetiFnfronoabklitio;hoyotufniaehlneiftyyntnaeMactaoycbmobetmefoeucmyxoovaemEtoneuspplmcrhimppnaranMeopebaaetnbptanrenisyaldcosetoyrwsnBovorfol.lyofhiimyinmdnboEifitcepulroipiaatahmdRtbrnaenosecelinfttydySvhooihneti;armbdoegdorayefupenmwbdtandyhnohedfyeumeoelrrnbddeitnrhutipsh;e Section 196 (1):

Act DIRECTORS OF COMPANY

A company shall have a minimum number of directors as

follows: case of a ppruivbalitcecocmompapnayny, t, ownoeddirireeccttoorrs; or
a)in the case of a
b)in the

D E F I NHI TOI LOSDNIeNOcGFtiC“oSOnUMB4PSA5I DN:IYA”R Ya(bsi3iibuw..ctt)rbcai)ooe(n)h)hAvrgd2paaf)aeieo)i)adrnnn)ccpq)pbbo)tpaoopg)puo(r)jhprir)Attpeloomipoyur1oirprhhbcpnmro)meompprceeriotimotaomt“oooorrmeasNmnBtsomvtottli.bboytloitiointihdphpnoontthitgiaiencrdlgddgninheiinonmgo.nyygga”erppgfcymg—inariethsfrtwtaaeypyrneclecashsiraliomsomctidirtesogenmoiimrhiote;eitntybeoronmynthcyeioanbtootse;edbet;ojsttger;jrirotboehuhccnofhynsceeaetabatuarrrsmojgtaanspeirtuennonyecwhsa.cdaftrtiardooamemwianinnuumevuinhdlnlsiaeadsdtmiuuecreeecisoaahfnnmetuotttydoamaelrhisoryacnftephineotpht;oraarpswi;stnlelilyttchy—iovshhseiwentleeigmnmpombr;ceioetoteoomrmhesmrabe;dpovmreoatbMourriiylmsoinan;nibogitsaltuoyetnifanedtorgcraorhinftcaiottsorresiutoeamnybtsljeieachrmynceabdtn.llescabr;enesytfgtooehrnominemegriatdinllwtychiitdbeehewntttohraraeldnof“sroBflceloeorwrrnheidnadugdco”oinvboeijrtetstcohtes: AND

L I A B ILI T NYSTAeAScNCtDiOoPNAnTSR4TI B3MU5ET:MO RBIEERSS
P R ES E
O F

uc(nocr5d(noee)tm2qrrut)pOibiaarnu(nektytdecehn)finerttionotwomhtitbnehahedneeeincyvcgeoeamxnunstettpermeioobnobffutfeaitartoescfecdoxoabmbmnecyypeipnaeahgsndniuymwiynmogltlisiummotniuhittdtneehepudedaapmbi;badooysotusnhgenuttabasnyuryaonsnfdshtehtaerahrteerea,eskncsaoeohnnmcedpotldagnonutbbyaryeirbiantucnhottteniheotemenr,eiesbemvhuvebatenelerlt,ryd,soibmunfybeiajtmehdcibdbmtieetritintoosgonhtwstahuoollebubtsnaehedseclsiuateapbitmo.lesnouto(nof5tt)h, ebe

REFTLIMECET!!I!O! N Plan a party by answering the Name:
following questions: Date:
Class:
Teacher:

QUESTION 2 cocsmaurmbrsytPohpiinsna
ertgorswrtfoenibitlten.aehQrttbsiawouhUevnsipEieisennhiwSesipspdToseewfrIifsnOhinoiceNnhds

QUESTION 1 A public company is 3

The measure of a allowed to invite the as

shareholder's liability for public to subscribe its
the debts of the company

is related to the amount shares. question 4
that the shareholder has

subscribed in the shares

of the company.

itsriute??
QUESTION 5 A sole
proprietorship is
A holding/parent company where the firm is

owns half of the share owned by one

capital in a subsidiary. person.

Your next chapter is
going to amazing



LIST OF SECTION COMPANIES 14 Application for incorporation
ACT 2016
20 Separate legal entity
CHAPTER 2: 21 Companies have unlimited
INCORPORATION OF A
COMPANY capacity

28(1) Change of name

31 Constitution of a company
32 Company may adopt a

constitution

33 Effect of constitution

34 Form of constitution
35 Contents of a company’s

constitution

LIST OF SECTION COMPANIES 36 Company may alter or
ACT 2016 37 amend constitution
Court may alter or amend
CHAPTER 2: 38 constitution
INCORPORATION OF A
COMPANY 65 Company limited by
115 guarantee shall have a
131 constitution
539
540 Pre-incorporation contract

Company may reduce its
share capital
Distribution out of profit

Liability where proper accounts
not kept
Responsibility for fraudulent
trading

Employees provident act 1991

46 Joint and se
veral liability

of directors, etc.

SECTION 14:

Application for incorporation

2) The application for incorporation under this section shall include a statement by every person who desires to form a
company containing the following particulars:
(a)the name of the proposed company;
(b)the status of whether the company is private or public;
(c)the nature of business of the proposed company;
(d)the proposed address of the registered office of the proposed company;
(e)the name, identification, nationality and the ordinary place of residence of every person who is to be a member of the
company and, where any of these persons is a body corporate, the corporate name, place of incorporation, registration
number and the registered office of the body corporate;
(f)the name, identification, nationality and the principal place of residence of every person who is to be a director;
(g)the name, identification, nationality and the principal place of residence of the secretary, if any;
(h)in the case of a company limited by shares, the details of class and number of shares to be taken by a member;
(i)in the case of a company limited by guarantee, the amount up to which the member undertakes to contribute to the
assets of the company in the event of its being wound up; and
(j)any other information as the Registrar may require.

SECTION 20: SECTION 21:
Separate legal entity
Companies have unlimited
A company incorporated under this Act capacity
is a body corporate and shall—
(1) A company shall be capable of
(a)have legal personality separate exercising all the functions of a
from that of its members; and body corporate and have the full
capacity to carry on or undertake
(b)continue in existence until it is any business or activity including
removed from the register. —

(a)to sue and be sued;
(b)to acquire, own, hold, develop
or dispose of any property; and
(c)to do any act which it may do
or to enterinto transactions.
(2) A company shall have the full
rights, powers and privileges for
the purposes mentioned in
subsection (1).

SECTION 28 SECTION 31:
(1): Constitution of a company

Change of name (1) A company, other than company limited by
guarantee, may or may not have a constitution.
A company may
resolve that its (2) If a company has a constitution, the company, each
name be changed director and each member of the company shall have the
rights, powers, duties and obligations set out in this
by special Act, except to the extent that such rights, powers,
resolution. duties and obligations are permitted to be modified in
accordance with this Act, and are so modified by the

constitution of the company.

(3) If a company has no constitution, the company,
each director and each member of the company shall
have the rights, powers, duties and obligations as set
out in this Act.

SECTION 32:

Company may adopt a constitution




(t1h)eAce(ocf2imof)spmeapcTit(nathnh3ynece)ytooaocncSfnmo(soudatn4isnbsyhs)shwsjptettaiteehaiTelticcedethnlhttioxuetuaatpttbtttlddhteicwehioioenooieorrpatnmtbnteetaphiRhscidctoaneaeotooohfnAtdgdlonpnaychiiopurststatenpsrtshits.gttoiaoiichpervoalnttoarodainnlumlsonrs.dotcpluvuibfioabitnwoieonnlsshdintantyoeeietssbrdcorhycfahgtcniomoovaeiossnfewnresomumasntnpobttbytenh(afshheisoe1neiirt)ytcrssuoc.,htt.troiiyAinisocostndtnts,ai(yut1snu)dtfeirroonm (5) The company and every
officer who contravene
subsection (4) commit an
offence and shall, on

conviction, be liable to a fine
not exceeding fifty thousand
ringgit and, in the case of a
continuing offence, to a

further fine not exceeding five
hundred ringgit for each day
during which the offence
continues after conviction.

:33ebct(od2m)uoAebplsaflernmcoryovamoveunenexndsaentudltysaelhce(sennt1herahpt)ttlsmceaT
eahoyhodspeemanermibcbfopctyobltvhoaenhieeennssebraiystpoyctctiaatnhoioaturnsnuntmttdhostiyooEeiteftofimnmhfttnceuhefeosbatsehemmmecihoacchrabpenlotall
eammnlbnho,rnsebefwda
tytmeodi.ahctcruobtbeoshntneentietreoosaannttdtioin.hsoteieupgdtntseiaeodmdn, beind
NOITCES

SECT ION 34:
Form of constitution




(Aac()tbi(,)wncrir)ienitaisgthnnittiedashesttencihdeaaneorclscceaadelcudswouame,codseoufeenroimstfseaoanaflsattcnohoyaTdaceamhglodpaceetmmoalodepepntmcramtyepofenoeranodyrdlansraiitytilnafmiirnidsaiortemuntneugaimiyegtictt,dowiisceasrrsotodnabitnrrdcsyateoadbaotmtrrotayrnhseeefintsehnndocgitad
aneucicrmlualtaeeancowreussnwdofiastet,emtnimirpthtooanmahefnycatneteodhyhaubree—ceisneponsd.oucmccoernopoocradrarriternrpasereyeotedssricspupaotueonotnincndneodtdeddaneiirisronnu3ngsgno2tedr;h3pcpeii6rtrrgseieiovovtnArinihacooilt3u3usl,7s8sy,;

SECTION 35:

Contents of a company’s constitution



(1) Subject to the provisions of this Act, the constitution of a company
may contain provisions relating to—
(a)the objects of the company;

(b)the capacity, rights, powers or privileges of the company if the
provision restricts such capacity, rights, powers or privileges;
(c)matters contemplated by this Act to be included in the constitution; and
(d)any other matters as the company wishes to include in its constitution.
(2) For the purposes of paragraph (1)(a), if the constitution sets out the

objects of a company—
(a)the company shall be restricted from carrying on any business or

activity that is not within those objects; and
(b)the company shall have full capacity and powers to achieve such

objects, unless the constitution provides otherwise.

at(fomh4ifeo()snfnou3peed(fs)Tene2a(hcncd)inT1eioetdh)ftwUseciaaiprAoeemntocicmdxedhnonocpcningmoaiedsntsgpmnnehshtiapydiahteiCtnatitlahtynahnslliduoayneog,lratnsdfmcttidhhrffoobyeo,aaeeeinninplvvsnvsndoilieocetcdaafannrleioynngyunhtntstdtotcuuvhyhhtaoiontiefeleifondicrofcfntmrotcosdacyoi,ieniompglancndomeetastseauunptceehtrnerny,ahiareiysilneaaotwSnebylctfRauhaagsedoietolfgEsalarpoagittilnteynitoceeCttidescsnorerhaooootnafebtrtlTfrnrmttcolhhutaariorceeetItairyaoonoihmn,OvnventmrsoeeuoeiasoepnnifbnocctmNecdnyaerthiabcwomgtitemianehasaodufrassnoe3umnatislttfsbeeyinpi.fap6snoearanteleeddncesuntc:cmduncsstceiterioooeierainittrldoc,alotnsduntntgoeeitotirolxnirnaooe(wfcgosns3tshelnaao)hipeytaolecrd.wllifruchoiaattutochnsteraiumotigertmomnhbpretheniseitaden,itttesdrdoisnsaomaatntetrelnuhdentte.teiarosnor

SECTION 37:

Court may alter or amend constitution

(1) The Court may, on the application of a director or member of a company,
if it is satisfied that it is not practicable to alter or amend the

constitution of the company using the procedures set out in this Act or
in the constitution itself, make an order to alter and amend the

constitution of a company on such terms and conditions as it thinks fit.
(2) The company shall ensure that an office copy of an order made under
subsection (1) together with a copy of the constitution as altered or
amended is lodged with the Registrar for registration within thirty days

from the date of the order.
(3) The company and every officer who contravene subsection (2) commit an
offence and shall, on conviction, be liable to a fine not exceeding ten
thousand ringgit and, in the case of a continuing offence, to a further

fine not exceeding five hundred ringgit for each day during which the
offence continues after conviction.

SECTION 38:

Company limited by guarantee shall have

a constitution

(1) A company limited by guarantee shall (c4to(tcs)(omt5ooh6puh)cmaA)gaonedoprninbdAimaeyaAvsysednvpnscseheriyiaypocalrvdnornioarivtipeylrotfnnemehsrivasyiiiotamiiiitctasbvhninsntipaelliedttietepdlseseeodwurieicidrnatstbpcpootecsioayrtrnmsbsioonloiopytnvsngvofiambseiaauininneegtnglnastymuihanordrisst’bvasenediaohhseortdggsnnaoeriaacsehhtslfusdnobdtae
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have a constitution.

(2) The constitution of a company limited
by guarantee shall be signed by the person
intending to incorporate such a company and
lodged with the Registrar at the time the

company is incorporated.
(3) The constitution shall state—
(a)that the company is a company limited by

guarantee;

(b)the objects of the company;
(c)the capacity, rights, powers and

privileges of the company;
(d)the number of members with which the

company proposed to be incorporated;
(e)matters contemplated by this Act to be

included in the constitution; and
(f)any other matters as the company wishes

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SECTION 115: SECTION 131:
Company may reduce its share Distribution out of profit

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fraudulent

pErmovpildo1e9yn9e1et sact SECTION 46:


Joint and several liability of
directors, etc.



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to the Fund.

REFTLIMECET!!I!O! N Plan a party by answering the Name:
following questions: Date:
Class:
Teacher:

QUESTION 1 QUESTION 2 to Ahfopacruvorre
epmtgohQpisseaeUtnCrsEayotSniisosTnrteIitOquutNiioren3d

Once a company is According to Companies
incorporated, the Act 2016, a company or
company exists as a legal
personality separated its agents cannot enter
from its member. into a contract before its


incorporation.


question 4

itsriute?? QUESTION 5 ‘Lifting of the
corporate veil’ is a
Any act that is not specified in situation which the
its objects or not identical to court would ignore the
their attainment was regarded to company principle of
separate legal entity
have been ultra vires.

REFERENCES

Department of Polytechnic and Community College Education, Ministry of
Education Malaysia. (2019). DPA30083 Company Law

chan, W.M. (2017). Essential Company Law in Malaysia: Navigating the Companies
Act 2016. Kuala Lumpur, Malaysia: Sweet and Maxwell Asia

Companies Commission of Malaysia, <https://www.ssm.com.my/Pages/Home.aspx>

ILBS (n.d). Companies Act 2016 (Act 777), ISBN: 978-967-89-2715-4, Selangor:
International Law Books Services (ILBS).

Siti Salwa, Marliana. (2018). Company Law. Selangor, Malaysia: Oxford fajar Sdn.
Bhd.

the

end