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Duties and Liabilities of Malaysian Company Directors
In Malaysia, company directors play a critical role in overseeing the company's operations, ensuring it complies with legal and regulatory obligations, and safeguarding the interests of shareholders. Directors are entrusted with significant responsibilities under the Companies Act 2016 (CA 2016) and other relevant laws and regulations.
Q&A on Charter Capital of Vietnam LLC
What is the minimum amount of charter capital required to set up a limited liability company in Vietnam? There is no minimum charter capital requirement for establishing a limited liability company (LLC) in Vietnam under the laws and regulations of Vietnam, except for certain specific sectors (such as banking and real estate sector).
Rules on Foreign Loans in Vietnam
Foreign loans not guaranteed by the government may be divided into short-term loans with a maturity of up to 1 year and medium or long-term loans with a maturity exceeding 1 year. Medium or long-term loans must be registered with and approved by the State Bank of Vietnam while short-term loans do not have so such requirement under normal circumstances.
Director Fee and Director Remuneration for Malaysia Companies
In Malaysia, the compensation paid to company directors can generally be categorised into two main types which are director fees and director remuneration. While both forms of compensation are paid to directors for their services, they differ in terms of nature, approval process, and taxation. Understanding these differences is crucial for compliance with the Companies Act 2016 and the Income Tax Act 1967.
Disclosure of Directors Interest in Malaysian Companies
Company directors play an important role in overseeing and operating a company. They hold the responsibility of making important decisions that affect the company and its shareholders. Hence, it is vital for directors to adhere to legal and ethical standards while prioritising the company’s best interests. Understanding their duties and obligations helps directors to execute their roles effectively and minimising legal liabilities.
CIDB License for Malaysian Companies
A CIDB license is a permit issued by Malaysian Construction Industry Development Board (CIDB) to all contractors, whether local or foreign before carrying out any construction work legally in Malaysia. Contractors seeking registration must adhere to the established requirements and procedures prior to the submission of their application.
Differences Between Malaysia and Labuan Companies
When considering the establishment of a business in Malaysia, entrepreneurs often have to choose between setting up a company on the Malaysia or in Labuan. Both jurisdictions have their own distinct characteristics, advantages, and requirements, which can significantly impact business operations.
Indemnity and Insurance for Officers and Auditors of Malaysian Companies
In Malaysia, corporate governance places significant emphasis on the protection and accountability of company officers and auditors. These individuals often face personal risks, including potential liabilities arising from legal proceedings or claims brought against them in the course of their duties. To mitigate this risk, companies can offer indemnity and insurance, ensuring that officers and auditors are not left personally liable for honest mistakes.
Comparison of JSC and LLC in Vietnam
Joint stock companies (JSC) and limited liability companies (LLC) are two common types of companies in Vietnam. The main differences between JSC and LLC are as follows:Advantages of a JSC: A JSC can issue shares and be listed on the Vietnam stock exchange. It generally has higher reputation and financing capabilities, making it more suitable for large businesses or corporate groups.
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.