Company Law Quiz

Under which Act are companies in Malaysia regulated?

• Partnership Act 1961

• Companies Act 1965

• Companies Act 2016

• Corporations Act 2020

According to the Companies Act 2016, a company is defined as:

• Any business that is profitable

• A company incorporated under this Act or other relevant laws

• A small business organization

• An informal group of individuals

What is the minimum number of members required to form a private company?

• One

• Two

• Ten

• Fifty

In a public company, the management is conducted by:

• All members equally

• The Chief Executive Officer (CEO)

• The Board of Directors (BOD)

• A government-appointed official

What is the maximum number of members allowed in a private company?

• 10

• 20

• 50

• No maximum limit

The case of Salomon v A Salomon & Co Ltd demonstrated the concept of:

• Partnership agreements

• Doctrine of separate legal entity

• Limited liability for partnerships

• Government control over corporations

Which section of the Companies Act 2016 defines a company as a separate legal entity?

• Section 2

• Section 20

• Section 21

• Section 50

Which of the following is NOT a characteristic of a company?

• Limited liability of members

• Members manage the company directly

• Shares can be transferred freely (in public companies)

• Company has a separate legal identity

Upon incorporation, a company is recognized as:

• A physical person

• An artificial person with legal recognition

• A temporary entity

• A small business entity

One disadvantage of a company is:

• Limited liability of members

• Profit-sharing among many members

• Freedom from government regulations

• Automatic dissolution upon disagreement