Business

Board Structure – Corporate Governance

Posted in Blog, Business

Stemming from my earlier write up on corporate governance, this article is the second part of the series which looks at the factors and qualities that create good corporate governance and its best practices. For this article, we shall address the area of Board of Directors, since they are the driving force of every organization. Therefore, a strong governance framework needs to be established, and should serve the following objectives:- Clarify the roles, responsibilities and accountabilities of the board members and management team; Enable the board to provide strategic guidance and...

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What is corporate governance?

Posted in Blog, Business

Corporate Governance Corporate governance is defined as a set of policies and procedures affecting the way a corporation is administered. These policies and procedures are mechanisms required to ensure accountability of certain individuals who have great impact on the organization’s direction and goals. The next question will be “Who are these individuals?” they are none other than the directors of the company. The role of the director is to design, develop and implement strategic plans for their organization in a cost-effective, time-efficient manner. Further to strategic plans, the...

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Company Secretary – Duties and Liabilities

Posted in Blog, Business

Few days ago, I received an inquiry from a few working girls who wanted to venture into some business. They wanted to find out about information about setting up a private limited company or Sdn Bhd. One very interesting question from them was “Why do we need a Company Secretary?” From that moment on, I am pretty sure many people out there are very curious about the same question and here, I would like to share with you, the duties and responsibilities of a company secretary. The Company Secretary Every limited company must have a minimum of one Company Secretary, according to Section 139 of...

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Duties and Responsibilities of Directors of a Private Limited Company

Posted in Blog, Business

Since a company is a legal entity by itself, its shareholders are required to appoint directors, officers who are entrusted with the power and authority to make decisions for the running of the company and manage the company’s affairs. For many private limited companies, the shareholders of the company are often involved in the daily operations and management of the company, and therefore, usually appoint themselves to be the directors of the company. In all limited companies, there must be at least 2 directors who each have his/her principal or only place of residence within Malaysia....

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PN16: Cash Criteron

Posted in Blog, Business, Finance

When a listed company has cash and short term investments, making up at least 70% of its consolidated assets (this condition is referred to as “Cash Criterion”), it has to notify Bursa Malaysia immediately. Bursa will determine if this company is considered a “Cash Company”. In most cases, the listed company will need to determine if it will trigger Cash Criterion when it disposes a major part of its group assets or core businesses. While the definition of cash is easily understood, short term investments are those investments that are by their nature readily realizable and intended to be...

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PN17: Listed Companies in Financial Distress

Posted in Blog, Business, Finance

What is PN17? In this article, I will talk about on listed companies that are classified as PN17. PN17 stands for Practice Note 17/2005 and is issued by Bursa Malaysia; relating to companies that are in financial distress. Companies that fall within the definition of PN17 will need to submit their proposal to the Approving Authority to restructure and revive the company in order to maintain the listing status. While there are more than a thousand companies listed in Bursa Malaysia, not all of them are in a financially sound position. Although at the point of listing, these listed companies...

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