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Loan to Directors of Malaysia Companies
Loans to directors in Malaysia are primarily governed by the CA 2016, which is the principal legislation that regulates companies in the country. Specific provisions in the CA 2016 address the issue of financial transactions between the company and its directors, including loans, advances, and guarantees.
Capital Reduction for Malaysian Companies
In Malaysia, a capital reduction must be approved by a special resolution via either confirmation by the Court under Section 116 of the CA 2016 or a solvency statement under Section 117 of the CA 2016. However, companies must first ensure that their Constitution allows for capital reduction. If such authority is not present, amendment to its Constitution must first be made.
Malaysia Private Company vs Branch Office vs Representative Office
When expanding business operations in Malaysia, companies often face the decision of choosing the most suitable structure for their activities. The primary options for foreign investors in Malaysia are establishing a private company, a branch office, or a representative office. Each has distinct characteristics, advantages, and regulatory requirements. This article explores these three options to help businesses make informed decisions.
Periodic Investment Reporting Requirements for Vietnam FIEs
Foreign invested enterprises (FIEs) registered in Vietnam are required to submit reports on investment activities to the relevant investment registration authorities on periodic basis in accordance with the Law on Investment of Vietnam and other laws and regulations.
Deregistration of Foreign Invested Company in Vietnam
A foreign invested company shall be dissolved under the following circumstances:The operation period specified in the company's charter expires without a decision on extension;The dissolution is decided by the shareholders of the company;The company fails to maintain statutory minimum number of members for six consecutive months without conversion;
Striking Off vs Winding Up of Malaysian Companies
A company may undergo dissolution at the hands of the Registrar of the Companies Commission of Malaysia ("CCM") or its various stakeholders, which may include directors, shareholders, creditors, or liquidators. This dissolution can occur for a variety of prevalent reasons, such as lack of business activities
Board Meetings of Malaysia Companies
Companies in Malaysia conduct meetings to discuss and decide on matters that require a decision. The types of meetings that may be held by a company including general meeting, board meeting, creditors’ meeting, management meeting etc. Amongst all, the most commonly occurring meeting for a Malaysia company is the Board of Directors meeting.
Equity Policy for Malaysia Companies
In broad terms, Malaysian legislation typically does not impose restrictions on foreign ownership in the share capital of companies. However, in cases where specific licenses are necessary for operations, equity conditions or mandates for hiring a minimum number of local employees might be enforced. These measures are intended to enhance the participation of Bumiputera (Malaysians of Malay origin) in the broader economy.
Q&A - Incorporation of Thailand Private Limited Company
The name of Thailand company must end with the word “Limited”. Also, it cannot be identical/similar to any company name that already registered with the Ministry of Commerce. In general, foreigner participation in Thailand company is allowed up to a maximum of 49% capital shares. Otherwise, it will be treated as foreign investment company that the business activities is greatly limited by The Foreign Business Act.
Issuance of Preference Shares by Malaysia Companies
Company shares are a type of security that symbolizes the level of a shareholder’s ownership in a company. It is common for a company to issue various types of shares, each of which grants its holders certain types of rights. In Malaysian companies, the two most prevalent forms of shares issued to shareholders are ordinary shares and preference shares. Each type has its own set of features and privileges for the holders.