Company Law
In Malaysia, the Companies Act 1965 (CA1965) is the main legislation leading the formation and operation of businesses. This Act permits to a group of people to form several types of corporate organization called as registered companies. Furthermore, this Act also offers services for the incorporation of companies such as regulation, formation of relationship between members and creditors, management and closing down of the company. Registrar of Companies (ROC) executes and manages control of the CA1965. Before starting a business, each of the companies must register with ROC. On the other hand, the Companies Act 2006 is the act that governing the establishment and running of companies in UK. This Act is revised to help people understand the law governing companies. It also enhances the shareholders engagement as well as it enables the directors of the companies to start up a business and reduce the burden of legislation.
There are three types of business entities in Malaysia which are sole trader, partnership and limited company. Sole trader is also known as sole proprietorship. It is a business that own by an individual and he or she owns unlimited liabilities. There is no separation between the owner and its personal assets which means that if the business is bankrupt, trade payables can sue the owner for all the debts owed in respect of its personal assets, personal income, and employment income. For partnership, it is a legal form of business that is carried out by two or more persons who share management, profits and losses. (Partnership, 2014) Same goes to partnership businesses, it also consists of unlimited liabilities but it is governed by Partnership Act 1961 in Malaysia. In the case of Mollowo, March & Co v Court of Wardsi , Sir Montague Smith stated that ‘to establish a partnership, it must have agreed to carry on business, or to share profits in same way.’ Under limited company, there are two form businesses which are private and public. A private
There are three types of business entities in Malaysia which are sole trader, partnership and limited company. Sole trader is also known as sole proprietorship. It is a business that own by an individual and he or she owns unlimited liabilities. There is no separation between the owner and its personal assets which means that if the business is bankrupt, trade payables can sue the owner for all the debts owed in respect of its personal assets, personal income, and employment income. For partnership, it is a legal form of business that is carried out by two or more persons who share management, profits and losses. (Partnership, 2014) Same goes to partnership businesses, it also consists of unlimited liabilities but it is governed by Partnership Act 1961 in Malaysia. In the case of Mollowo, March & Co v Court of Wardsi , Sir Montague Smith stated that ‘to establish a partnership, it must have agreed to carry on business, or to share profits in same way.’ Under limited company, there are two form businesses which are private and public. A private
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