Company Law Chapter 4

What is the primary role of directors in a company?

• To represent shareholders in court

• To manage the company and make decisions

• To audit the company's financial statements

• To handle customer complaints

According to Section 2 of the Companies Act 2016, who is included in the definition of a director?

• Any person occupying the position of director

• Only those who have been appointed by the board

• Only individuals named in the incorporation application

• Only shareholders of the company

What does Section 211(1) of CA 2016 state about the management of a company?

• It must be managed by the shareholders

• It shall be managed by the Board of Directors

• It can be managed by any employee

• It must be managed by an external auditor

What is the minimum age requirement to be a director under Section 196 of CA 2016?

• 16 years old

• 18 years old

• 21 years old

• No age requirement

In the case of Automatic Self-Cleansing Filter Syndicate Co Ltd v Cunninghame, who had the authority to make management decisions?

• The shareholders

• The board of directors

• The company's secretary

• The external auditors

What can shareholders do in the event of a deadlock in the board of directors?

• File a lawsuit against the directors

• Elect new shareholders

• Immediately dissolve the company

• Take over the management power of the board

What is one method of appointing a director upon incorporation?

• By being named in the incorporation application

• By a special resolution of the members

• By a vote at the Annual General Meeting

• By nomination from existing directors

What is required for a company to appoint a company secretary?

• Must be a natural person and a resident of Malaysia

• Must have a law degree

• Must be a corporation

• Must be at least 30 years old

What is the role of the company secretary according to Section 235?

• To maintain the registered office and records

• To manage the company's finances

• To oversee the board of directors

• To represent the company in legal matters

What power do members have regarding changes to the company's constitution?

• They can propose changes but not approve them

• They cannot influence changes

• They can approve changes

• They can veto any changes