Small and medium enterprises (SMEs) play a major part in the Malaysian economy. In recent years, the number of SMEs operating as private limited companies has risen significantly. These companies are now regulated by the new Companies Act 2016 (CA 2016) which has brought in major changes to company law in Malaysia. This book has been specially prepared to guide SMEs which are private limited companies and exempt private companies in navigating the regulatory requirements under the CA 2016.

Part 1 – Introduction

• Types of business entities available to SMEs

• Special emphasis on private limited companies and exempt private companies

• Concept of corporate personality and its benefits

Part 2 – Administration and management

• One-member one-director private companies

• Capacity and powers of a company

• Requirement for a constitution

• Option for the appointment of an auditor

• Formation and execution of corporate contracts

• Procedures for a company to contract with its promoter and director

• Contracts requiring members’ approval

• Duty imposed on an officer as a fiduciary

• Effect of indemnity given by a company to its officer

Part 3 – Sources of financing

• Protection of investors

• Procedure for issuance of new shares, classes of shares, class rights and transfer of shares

• Rules of capital maintenance

• Company’s power to borrow

• Usage of assets as security, with special emphasis on intellectual property

Part 4 – Leveraging on ICT

• Usage of ICT in lodgement of documents with Registrar of Companies

• Employing ICT in conducting company meetings