academic writing - law485
1.0 DIRECTOR
1.1 WHO IS DIRECTOR?
A company is a business entity whereby it is associated or collected of individual real persons and/or other companies, who each provided some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be made to exist in law and then a company is itself considered a "legal person". The name company arose because, at least originally, it represented or was owned by more than one real or legal person. Therefore to operate the company, it needs a person who called a director.
Any person can be a director, but only for those who is qualified as required under the Malaysia Companies Act 1965 (MCA). As stated under the Act1, it requires at least 2 directors and both of them must have principal or only place residence within Malaysian2. In addition, it includes any person occupying the position of a director of a corporation by whatever name called and include a person in accordance with whose directions and instructions the director of a corporation are accustomed to act and an alternate or substitute director and a director is an officer of a company but he is not an employee unless he has separate contract of employment as a salaried executive3.
Secondly, the director must be at their natural person4 of full age 5 and the limit maximum age of 70 that is other than private company, which is not a subsidiary of a public company6. However, there will be exception to restriction of age if he is already occupied the office as a director, he may be continue to hold the position after reaching the limit or at least ¾ of the members of the company supported his appointment or reappointment that approved by a resolution of the company7. This also mentioned in In addition section 135 of the Act obliged the director to give disclosure to the company in writing of the date he will return to 70 within 14 days after becoming a director. Any failure
1.1 WHO IS DIRECTOR?
A company is a business entity whereby it is associated or collected of individual real persons and/or other companies, who each provided some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be made to exist in law and then a company is itself considered a "legal person". The name company arose because, at least originally, it represented or was owned by more than one real or legal person. Therefore to operate the company, it needs a person who called a director.
Any person can be a director, but only for those who is qualified as required under the Malaysia Companies Act 1965 (MCA). As stated under the Act1, it requires at least 2 directors and both of them must have principal or only place residence within Malaysian2. In addition, it includes any person occupying the position of a director of a corporation by whatever name called and include a person in accordance with whose directions and instructions the director of a corporation are accustomed to act and an alternate or substitute director and a director is an officer of a company but he is not an employee unless he has separate contract of employment as a salaried executive3.
Secondly, the director must be at their natural person4 of full age 5 and the limit maximum age of 70 that is other than private company, which is not a subsidiary of a public company6. However, there will be exception to restriction of age if he is already occupied the office as a director, he may be continue to hold the position after reaching the limit or at least ¾ of the members of the company supported his appointment or reappointment that approved by a resolution of the company7. This also mentioned in In addition section 135 of the Act obliged the director to give disclosure to the company in writing of the date he will return to 70 within 14 days after becoming a director. Any failure
References: Almer, R, and Brody, R. 2002. An empirical investigation of context-dependent communications between auditors and bankers. Managerial Auditing Journal. 17(8):478- 48. Companies Commission of Malaysia, Corporate Law Reform Committee, Review of the Companies Act 1965 – Final Report, (Kuala Lumpur: Companies Commission of Malaysia 2007). Balachandran, B.V., and Nagarajan, N.J. 1987. Imperfect information, insurance and auditors’ legal liability. Contemporary Accounting Research. 3:281-301. Securities Commission Act 1993. www.internationalconference.com.my/.../255- ... http://www.businessdictionary.com/definition/key-person.html