ACCOUNTING
Topic_1_Introduction_to_Company_Law

Topic_1_Introduction_to_Company_Law - UBML 2013 COMPANY LAW...

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UBML 2013 COMPANY LAW UBML 2013 COMPANY LAW Topic 1: Introduction to Company Law Topic 1: Introduction to Company Law By Thamil Durai Chelliah
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LEARNING OUTCOMES Describe the different forms of business entities and its registration procedures. Define the principle of the legal entity of a company and the lifting of the veil of incorporation. Describe the various types of companies. Explain the features of a company and how it differs from a partnership. Explain the procedure for the incorporation of a company. Describe the Regulatory Bodies
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Main Statutes Companies Bill 2015 Companies Act 1965 (replaced by Companies Bill 2015) Capital Markets and Services Act 2007 Securities Commission Act 1993 Companies Commission of Malaysia Act 2001
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Other Relevant Statutes Companies Regulations 1966 Companies (Winding-up) Rules 1972 Companies (Reduction of Capital Rules) 1972 Securities Commission (Shelf Registration Scheme for Debentures) Regulation 2000 Malaysian Code On Takeovers and Mergers 1998 Capital Markets and Services Regulations 2007 Guidelines on Regulation of Markets
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INTRODUCTION Choice of forming a business entity basically depend on: a.the nature of the business; b.the amount of capital to be invested; c.the extent of risk acceptable to the potential businessman.
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Types of business entities There are three main forms of business organizations in Malaysia: sole proprietorships, partnerships and companies. 1. A sole proprietorship is one person in business for himself. 2. A partnership is an organization of two or more persons associated together for the purpose of conducting a business. These 2 types of business organisations are referred to as unincorporated associations ’. They have no separate legal existence apart from the person/s who conducts the business.
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Sole Proprietorship A sole proprietorship is one person in business for himself and is a business wholly owned by one. A sole proprietorships is referred to as “unincorporated associations” It does not has a separate legal existence apart from the persons who conduct the business. The business and the sole trader are considered as one entity. A sole proprietor owns the business by himself and that his personal properties are considered as the business’s assets. A sole proprietor is ultimately responsible for all the debts of the firm.
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Sole Proprietorship (Cont.) If the sole proprietorship assets are insufficient to discharge the firm’s liabilities, the sole proprietor must contribute towards those assets until the liabilities are discharged. The liability of the sole proprietor to pay the firm’s debts is unlimited. As a sole proprietorship has no legal entity, any legal proceedings in which the sole proprietorship firm may be involved are brought or defended in the name of the sole proprietor of the firm, not in the name of the firm itself.
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  • Summer '13
  • student
  • Corporation, Types of companies, A Co.

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