Company Act

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  • Topic: Board of directors, Fiduciary, Skill
  • Pages : 2 (520 words )
  • Download(s) : 132
  • Published : March 18, 2013
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COMPANY ACT 1965
It was mention in paragraph one that both Encik Zayed and Puan Hashimah does not familiar with provision of company act 1965 and the duties their roles and duties as Company Directors. According to section 122 (1) every company shall have at least two directors, who each has his principal or only place of residence within Malaysia. So they follow the provision of section 122(1) which is mention about at least 2 directors and both of them are the directors of the company. For their duties, according to the law they are two types of duties of director, duties of care, skill and diligence and fiduciary duties. In this case does not show both Encik Zayed and Puan Hashimah take an effort to know his right and obligations in the company it’s been prove by statement they are not very familiar with the company act. Encik Zayed shows his duty care by delegate his power and trust to cik Amy a new finance executive to perform a work related to company financial. Other duties that on duties of care, skill and diligence are duty of skill which is directors are not necessary to be a skill person and members cannot complain about the unskillful of directors. Next is duty to be diligent, directors must exercise reasonable diligence in performing their tasks. Next are fiduciary duties, which is mean that director must exercise in the interests of the company and for the proper corporate purposes. Directors must benefit others that depend on him. In this case Encik Zayed does not show his fiduciary duty when he makes a decision that may not benefits his company. For example, Encik Zayed does not care or perform statutory audit to company which is at last very important in order to have a loan with a bank. SEGREGATION OF DUTIES

No one person does the primary functions of authorized, recording, and taking care the custody asset. Delima Enterprise Sdn. Bhd does not have proper segregation of duties. It may happen due to several factors. First factor is no proper...
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