Management and control
Issue to be highlighted
| Relevant references
| DIRECTOR’S DUTIES * Directors, Encik Zayed and Puan Hashimah do not understand about the Companies Act 1965 and his responsibilities
| * Section 132 of Companies Act 1965 : director of a company shall at all times exercise his powers for a proper purpose and act bona fide (in good faith in the best interest of the company) * Shall exercise reasonable care, skill and diligence with the knowledge and experience * Duty to disclose all material information and various interest in the business conduct * Power to delegate
| * Encik Zayed and Puan Hashimah must know what are their duties and responsibilities * All types of incorporated companies * The need to comply with the applicable standards and regulations * Enhance corporate governance * Matters regarding powers of the: * registrar of the company * management and administration of the company * Officers of the company * Accounting and auditing of the company
| NO STANDARD OPERATING PROCEDURE (SOP) IMPLEMENTED * Withdrawal of company’s money made without proper documentation. * Decision and authorization made by the directors on its own without proper documentation * It will increase the risk of fraud and inconsistency in performing task * Give the auditor hard time to keep track of the transaction and movement of asset.
| * Standard operating procedures (SOP) are a detailed explanation of how a policy is to be implemented. * Serve as framework for organizational policy – provide direction and structure * Written documentation of best practice * Tells what, how, when, why, and who * Provide foundation for: * job descriptions, * employee training * corrective action and discipline, and * Performance review.
| Delima should implement standard operating procedure (SOP) : * Increase efficiency and consistence in performing task *...
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