According On the other hand, public companies remains the
to the old Act, it is compulsory for incorporation to hold Annual
General Meeting once in year (SSM,
2017). However, the requirement for AGM for private companies has been eliminated
under the New CA. This means that when
CA come into effective on 2017, all private companies are
do not compulsory to get AGM in every year, except required by the or either
validly rescued by any needed members (q3solutions, 2017).
There is the different
between the old act 196 as all meetings of pre
companies are ken as meeting of associations in the n act 26.
The d process for private companies can be done by the written. 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).
On the other hand, public companies remains the same that are compulsory to
hold an AGM in every year (q3solutions,
changes in the new CA is important to ensure that the responsibilities of the
boards are carried out and to run into their fiduciary duties. Also, the
changes made in the CA 2016 is to enhance the internal control, corporate
governance as well (Nee. E, 2017). Formerly, shareholders
have limited right, thus it is 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.
Under the new
CA, there are various policies that have impact on the private companies. For instance, all the necessary
process and procedure has to distribute separately such as the selection of auditors, lodgment of annual
returns and the tabling of audited financial statements as well as the
selection and retirement of boards, but is irrelevant to the 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 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 consent
for members’ written for companies has been detached in the 2016. It is compulsory to permit a written that
is engaged the required majority of eligible associates (Zico law, 2015).
When the AGMs is
removed from the CA 206, it
allowed companies to diminish cost of doing business. As it is not necessary to
to appoint a company secretary at the point of incorporation (Nee.
E, 2017). As
the private companies do not need to set up AGM, then all the Deon can be made by written on and the announcement
are sent through electronically (Nee. E, 2017). This can be clarified as the cost- effective measures.
Moreover, the elimination of AGM for
pet companies that drive the positive effect is to inspect the entire and simplify
the rules relating to procedures as well as provides
flexibility in managing affairs of companies in order to have the efficiency
incorporation process and procedure (Isa.