According (q3solutions, 2017). The rationale of the changes

According
to the old Companies Act 1965, it is compulsory for incorporation to hold Annual
General Meeting (AGM) once in every calendar year and at least fifteen months after the holding of the last preceding AGM (SSM, 2017). However,
the requirement for AGM for private companies has been abolished under the New Companies
Act. This means that when
CA 2016 come into force effective on 31 January 2017,
all private companies are no longer required to hold AGM in every calendar year,
unless required by its constitution or validly required by the necessary members
(q3solutions, 2017).
However, public companies remains the same that are required to hold an AGM in
every calendar year (q3solutions,
2017).

The
rationale of the changes in the new CA is
to ensure that the duty and responsibilities of the directors are carried out and
to meet their fiduciary duties. Also, the changes made in the CA 2016 is to
promote the enhancing internal control, corporate governance and corporates
social responsibility (Nee. E, 2017). Before that,
shareholders have limited right, thus especially to encourage the shareholders
involved in the daily operational of the company (Nee.
E, 2017).
The purposes of New Act
is to provide all the process and provisions necessary for the smooth running
of a company. Consequently, AGM is removing the mandatory requirement for
private companies to hold AGMs. There is the different between the old act 1965
as all meetings of private companies are known as meeting
of members in the new act
2016. The decisions process for private
companies can be made done by the written resolutions. However, a resolution to
remove an auditor or a director before the expiration of his term of office cannot
be passed as a written resolution (Kensington,
2017).

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Under the new
CA, there are various policies that have impact on the private companies. The
abolishment of AGM in private company has impacted the business,
such as all
the necessary process and procedure has to distribute separately such as the
election of auditors, lodgment of annual returns and the tabling of audited
financial statements as well as the election and retirement of directors, and not
tied to the holding of an AGM for private companies (Zico law, 2015). Besides that, even though the members do
not have the benefit of the forum of a general meeting to discuss and question
the board of directors on such statements, but they still have a right to
obtain audited financial statements (Zico law, 2015). Furthermore, the
requirement of unanimous consent for members’ written resolutions for private
companies has been removed in the CA 2016. This means that the unanimous
consent no longer required for members’ written resolution for private
companies (Zico
law, 2015). It is compulsory to pass a written resolution that is signed by the
required majority of eligible members within 28 days from the circulation date (Zico law, 2015).

When the AGMs is
removed from the new CA 2016, it allowed
private companies to reduce cost of doing businesses. As it is not necessary to
pay to appoint a company secretary at the point of incorporation (Nee.
E, 2017).  As
the private companies do not need to convene AGM, then all the decision can be made by written
resolution and the notice for the meeting can be sent through electronically (Nee. E, 2017). This can be clarified as the cost- effective
measures. Moreover, the abolition of AGM
for private companies that drive the positive impact is to examine the entire
process and simplify the rules relating to meeting
procedures as well as provides flexibility in
managing affairs of companies in order to have a speedy incorporation process
and procedure (Isa. A, 2017).According
to the old Companies Act 1965, it is compulsory for incorporation to hold Annual
General Meeting (AGM) once in every calendar year and at least fifteen months after the holding of the last preceding AGM (SSM, 2017). However,
the requirement for AGM for private companies has been abolished under the New Companies
Act. This means that when
CA 2016 come into force effective on 31 January 2017,
all private companies are no longer required to hold AGM in every calendar year,
unless required by its constitution or validly required by the necessary members
(q3solutions, 2017).
However, public companies remains the same that are required to hold an AGM in
every calendar year (q3solutions,
2017).

The
rationale of the changes in the new CA is
to ensure that the duty and responsibilities of the directors are carried out and
to meet their fiduciary duties. Also, the changes made in the CA 2016 is to
promote the enhancing internal control, corporate governance and corporates
social responsibility (Nee. E, 2017). Before that,
shareholders have limited right, thus especially to encourage the shareholders
involved in the daily operational of the company (Nee.
E, 2017).
The purposes of New Act
is to provide all the process and provisions necessary for the smooth running
of a company. Consequently, AGM is removing the mandatory requirement for
private companies to hold AGMs. There is the different between the old act 1965
as all meetings of private companies are known as meeting
of members in the new act
2016. The decisions process for private
companies can be made done by the written resolutions. However, a resolution to
remove an auditor or a director before the expiration of his term of office cannot
be passed as a written resolution (Kensington,
2017).

Under the new
CA, there are various policies that have impact on the private companies. The
abolishment of AGM in private company has impacted the business,
such as all
the necessary process and procedure has to distribute separately such as the
election of auditors, lodgment of annual returns and the tabling of audited
financial statements as well as the election and retirement of directors, and not
tied to the holding of an AGM for private companies (Zico law, 2015). Besides that, even though the members do
not have the benefit of the forum of a general meeting to discuss and question
the board of directors on such statements, but they still have a right to
obtain audited financial statements (Zico law, 2015). Furthermore, the
requirement of unanimous consent for members’ written resolutions for private
companies has been removed in the CA 2016. This means that the unanimous
consent no longer required for members’ written resolution for private
companies (Zico
law, 2015). It is compulsory to pass a written resolution that is signed by the
required majority of eligible members within 28 days from the circulation date (Zico law, 2015).

When the AGMs is
removed from the new CA 2016, it allowed
private companies to reduce cost of doing businesses. As it is not necessary to
pay to appoint a company secretary at the point of incorporation (Nee.
E, 2017).  As
the private companies do not need to convene AGM, then all the decision can be made by written
resolution and the notice for the meeting can be sent through electronically (Nee. E, 2017). This can be clarified as the cost- effective
measures. Moreover, the abolition of AGM
for private companies that drive the positive impact is to examine the entire
process and simplify the rules relating to meeting
procedures as well as provides flexibility in
managing affairs of companies in order to have a speedy incorporation process
and procedure (Isa. A, 2017).

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