SlideShare ist ein Scribd-Unternehmen logo
CORPORATE LAW
COMPANY AS A FORM OF BUSINESS
ORGANISATION
• What is ‘company’?
• Why do we need business organisation?
• Name types of business organisations.
• Are all companies listed on Bursa Malaysia?
SEPARATE LEGAL PERSONALITY
• What is separate legal personality?
• The law treat a company as being a separate person from its
members and those who manage its operations.
• Company can incur and receive obligation.
• Company can hold property on its own name.
• Company can be a plaintiff or defendant in court proceeding
SEPARATE LEGAL PERSONALITY
• What are the consequences of treating the company as a separate legal
entity?
• A company’s obligations and liabilities are its own, and not those of its
participants.
• A company can sue and be sued on its own name.
• A company has perpetual succession.
• A company’s property is not property of its participants.
• A company can contract with its controlling participants
PIERCING THE CORPORATE VEIL
• What is corporate veil?
• What is meant by ‘lifting the corporate veil’ or ‘piercing the corporate veil’?
• When have the courts pierced the corporate veil?
• Where the corporate form is used to avoid an existing legal duty.
• Where the company is acting as the agent or partner of the controller.
• Where the laws or statutes expressly lift the corporate veil. (eg: s36, s304, s
67(5) of Companies Act. Also in Income Tax Act 1967.
LIMITED LIABILITY
• What is limited liability?
• A member of a company limited by share is usually not required to contribute amounts
from their personal wealth, beyond the subscription price of their shares, to meet the
debts of a company.
• Why?
• Encourage risk taking and entrepreneurial behaviour
• Decrease the need for shareholder to monitor the managers
• Provide incentive for managers to act efficiently
ADVANTAGES OF CORPORATE FORM
• Limited liability
• Perpetual succession
• Free transferability of interest
• Companies as large commercial enterprises
• Corporate law as a standard form contract between participants
• Company charges
• Taxation consideration
DISADVANTAGES OF CORPORATE
FORM
• Establishment and administration cost
• Publicity
• Public law obligation
PUBLIC AND PRIVATE COMPANIES
• PRIVATE COMPANY:
• Sdn Bhd
• Must have restriction to transfer its share
• Must not more than 50 shareholders
• Not allowed to be listed in share market – no public shareholders
• PUBLIC COMPANY:
• Bhd
• Purpose – to have public shareholders
• Subject to additional obligation such as to maintain register of substansial shareholder
(s 69L CA)
CORPORATE GROUP
• What are corporate groups? Why?
• Group relationship.
• A corporation is deemed to be related to another where the corporation:
• Is the holding company of the other corporation
• Is a subsidiary of the other corporation
• Is a subsidiary of the holding company of the other corporation
• Subsidiary if: (section 5)
• The holding company controls the composition of the subsidiary board
• Control more than one-half of the voting power
• Hold more than one-half of the issued capital
THANK YOU

Weitere ähnliche Inhalte

Ähnlich wie Company-Law.pptx

Forms of business organisation
Forms of business organisationForms of business organisation
Forms of business organisation
Ni234
 
legal forms of ownership
legal forms of ownershiplegal forms of ownership
legal forms of ownership
university of johannesburg
 
Forms of business organisations
Forms of business organisationsForms of business organisations
Forms of business organisations
deepu2000
 
PRESENTATION OF PP.pptx
PRESENTATION OF PP.pptxPRESENTATION OF PP.pptx
PRESENTATION OF PP.pptx
hhhhhhhhhh2
 
Company act,2013
Company act,2013Company act,2013
Company act,2013
HARSHIT GARG
 
Corporate Entities.pptx
Corporate Entities.pptxCorporate Entities.pptx
Unit 2 business
Unit 2 businessUnit 2 business
Unit 2 business
Hellena Roza
 
C-Suite Snacks Webinar Series: Tax Structures to Reduce Cost and Improve Comp...
C-Suite Snacks Webinar Series: Tax Structures to Reduce Cost and Improve Comp...C-Suite Snacks Webinar Series: Tax Structures to Reduce Cost and Improve Comp...
C-Suite Snacks Webinar Series: Tax Structures to Reduce Cost and Improve Comp...
Citrin Cooperman
 
Company law
Company lawCompany law
Company law
Ankit Porwal
 
FORMS_OF_BUSINESS_16.ppt
FORMS_OF_BUSINESS_16.pptFORMS_OF_BUSINESS_16.ppt
FORMS_OF_BUSINESS_16.ppt
DjhxcXhuxuc
 
Law incorporation of companies
Law incorporation of companiesLaw incorporation of companies
Law incorporation of companies
Adil Shaikh
 
CH 7 Types of Business Ownership.ppt
CH 7 Types of Business Ownership.pptCH 7 Types of Business Ownership.ppt
CH 7 Types of Business Ownership.ppt
Gebren1
 
Types of Business Ownership PowerPoint Presentation
Types of Business Ownership PowerPoint PresentationTypes of Business Ownership PowerPoint Presentation
Types of Business Ownership PowerPoint Presentation
evytsopanoglou
 
Chapter 7 (1).pptx
Chapter 7 (1).pptxChapter 7 (1).pptx
Chapter 7 (1).pptx
JethroAchelam
 
Legal Aspects Of Business Unit - 2 PPTs
Legal Aspects Of Business Unit - 2 PPTsLegal Aspects Of Business Unit - 2 PPTs
Legal Aspects Of Business Unit - 2 PPTs
Mohan Raj
 
Ch 6-7 V 20202-8-2024 Rashad 5555555.pptx
Ch 6-7 V 20202-8-2024 Rashad 5555555.pptxCh 6-7 V 20202-8-2024 Rashad 5555555.pptx
Ch 6-7 V 20202-8-2024 Rashad 5555555.pptx
MohamedRashad398974
 
Features of company vikram d nawale
Features of company vikram d nawaleFeatures of company vikram d nawale
Features of company vikram d nawale
VikramNawale1
 
Types of Business Ownership.ppt
Types of Business Ownership.pptTypes of Business Ownership.ppt
Types of Business Ownership.ppt
TarekElHalabi2
 
Reflections on Governance
Reflections on GovernanceReflections on Governance
Reflections on Governance
David Doughty
 
Organizational Types
Organizational TypesOrganizational Types
Organizational Types
Urban League of Greater Atlanta
 

Ähnlich wie Company-Law.pptx (20)

Forms of business organisation
Forms of business organisationForms of business organisation
Forms of business organisation
 
legal forms of ownership
legal forms of ownershiplegal forms of ownership
legal forms of ownership
 
Forms of business organisations
Forms of business organisationsForms of business organisations
Forms of business organisations
 
PRESENTATION OF PP.pptx
PRESENTATION OF PP.pptxPRESENTATION OF PP.pptx
PRESENTATION OF PP.pptx
 
Company act,2013
Company act,2013Company act,2013
Company act,2013
 
Corporate Entities.pptx
Corporate Entities.pptxCorporate Entities.pptx
Corporate Entities.pptx
 
Unit 2 business
Unit 2 businessUnit 2 business
Unit 2 business
 
C-Suite Snacks Webinar Series: Tax Structures to Reduce Cost and Improve Comp...
C-Suite Snacks Webinar Series: Tax Structures to Reduce Cost and Improve Comp...C-Suite Snacks Webinar Series: Tax Structures to Reduce Cost and Improve Comp...
C-Suite Snacks Webinar Series: Tax Structures to Reduce Cost and Improve Comp...
 
Company law
Company lawCompany law
Company law
 
FORMS_OF_BUSINESS_16.ppt
FORMS_OF_BUSINESS_16.pptFORMS_OF_BUSINESS_16.ppt
FORMS_OF_BUSINESS_16.ppt
 
Law incorporation of companies
Law incorporation of companiesLaw incorporation of companies
Law incorporation of companies
 
CH 7 Types of Business Ownership.ppt
CH 7 Types of Business Ownership.pptCH 7 Types of Business Ownership.ppt
CH 7 Types of Business Ownership.ppt
 
Types of Business Ownership PowerPoint Presentation
Types of Business Ownership PowerPoint PresentationTypes of Business Ownership PowerPoint Presentation
Types of Business Ownership PowerPoint Presentation
 
Chapter 7 (1).pptx
Chapter 7 (1).pptxChapter 7 (1).pptx
Chapter 7 (1).pptx
 
Legal Aspects Of Business Unit - 2 PPTs
Legal Aspects Of Business Unit - 2 PPTsLegal Aspects Of Business Unit - 2 PPTs
Legal Aspects Of Business Unit - 2 PPTs
 
Ch 6-7 V 20202-8-2024 Rashad 5555555.pptx
Ch 6-7 V 20202-8-2024 Rashad 5555555.pptxCh 6-7 V 20202-8-2024 Rashad 5555555.pptx
Ch 6-7 V 20202-8-2024 Rashad 5555555.pptx
 
Features of company vikram d nawale
Features of company vikram d nawaleFeatures of company vikram d nawale
Features of company vikram d nawale
 
Types of Business Ownership.ppt
Types of Business Ownership.pptTypes of Business Ownership.ppt
Types of Business Ownership.ppt
 
Reflections on Governance
Reflections on GovernanceReflections on Governance
Reflections on Governance
 
Organizational Types
Organizational TypesOrganizational Types
Organizational Types
 

Kürzlich hochgeladen

Receivership and liquidation Accounts Prof. Oyedokun.pptx
Receivership and liquidation Accounts Prof. Oyedokun.pptxReceivership and liquidation Accounts Prof. Oyedokun.pptx
Receivership and liquidation Accounts Prof. Oyedokun.pptx
Godwin Emmanuel Oyedokun MBA MSc PhD FCA FCTI FCNA CFE FFAR
 
fnaf lore.pptx ...................................
fnaf lore.pptx ...................................fnaf lore.pptx ...................................
fnaf lore.pptx ...................................
20jcoello
 
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdfV.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
bhavenpr
 
It's the Law: Recent Court and Administrative Decisions of Interest
It's the Law: Recent Court and Administrative Decisions of InterestIt's the Law: Recent Court and Administrative Decisions of Interest
It's the Law: Recent Court and Administrative Decisions of Interest
Parsons Behle & Latimer
 
Presentation (1).pptx Human rights of LGBTQ people in India, constitutional a...
Presentation (1).pptx Human rights of LGBTQ people in India, constitutional a...Presentation (1).pptx Human rights of LGBTQ people in India, constitutional a...
Presentation (1).pptx Human rights of LGBTQ people in India, constitutional a...
SKshi
 
Genocide in International Criminal Law.pptx
Genocide in International Criminal Law.pptxGenocide in International Criminal Law.pptx
Genocide in International Criminal Law.pptx
MasoudZamani13
 
Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...
Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...
Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...
Sangyun Lee
 
The Work Permit for Self-Employed Persons in Italy
The Work Permit for Self-Employed Persons in ItalyThe Work Permit for Self-Employed Persons in Italy
The Work Permit for Self-Employed Persons in Italy
BridgeWest.eu
 
Patenting_Innovations_in_3D_Printing_Prosthetics.pptx
Patenting_Innovations_in_3D_Printing_Prosthetics.pptxPatenting_Innovations_in_3D_Printing_Prosthetics.pptx
Patenting_Innovations_in_3D_Printing_Prosthetics.pptx
ssuser559494
 
Lifting the Corporate Veil. Power Point Presentation
Lifting the Corporate Veil. Power Point PresentationLifting the Corporate Veil. Power Point Presentation
Lifting the Corporate Veil. Power Point Presentation
seri bangash
 
快速办理(SCU毕业证书)澳洲南十字星大学毕业证文凭证书一模一样
快速办理(SCU毕业证书)澳洲南十字星大学毕业证文凭证书一模一样快速办理(SCU毕业证书)澳洲南十字星大学毕业证文凭证书一模一样
快速办理(SCU毕业证书)澳洲南十字星大学毕业证文凭证书一模一样
15e6o6u
 
From Promise to Practice. Implementing AI in Legal Environments
From Promise to Practice. Implementing AI in Legal EnvironmentsFrom Promise to Practice. Implementing AI in Legal Environments
From Promise to Practice. Implementing AI in Legal Environments
ssusera97a2f
 
San Remo Manual on International Law Applicable to Armed Conflict at Sea
San Remo Manual on International Law Applicable to Armed Conflict at SeaSan Remo Manual on International Law Applicable to Armed Conflict at Sea
San Remo Manual on International Law Applicable to Armed Conflict at Sea
Justin Ordoyo
 
Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...
Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...
Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...
Massimo Talia
 
在线办理(UNE毕业证书)新英格兰大学毕业证成绩单一模一样
在线办理(UNE毕业证书)新英格兰大学毕业证成绩单一模一样在线办理(UNE毕业证书)新英格兰大学毕业证成绩单一模一样
在线办理(UNE毕业证书)新英格兰大学毕业证成绩单一模一样
15e6o6u
 
Integrating Advocacy and Legal Tactics to Tackle Online Consumer Complaints
Integrating Advocacy and Legal Tactics to Tackle Online Consumer ComplaintsIntegrating Advocacy and Legal Tactics to Tackle Online Consumer Complaints
Integrating Advocacy and Legal Tactics to Tackle Online Consumer Complaints
seoglobal20
 
The Future of Criminal Defense Lawyer in India.pdf
The Future of Criminal Defense Lawyer in India.pdfThe Future of Criminal Defense Lawyer in India.pdf
The Future of Criminal Defense Lawyer in India.pdf
veteranlegal
 
Anti Money Laundering & know client.pptx
Anti Money Laundering & know client.pptxAnti Money Laundering & know client.pptx
Anti Money Laundering & know client.pptx
TarunKumarSingh37
 
Search Warrants for NH Law Enforcement Officers
Search Warrants for NH Law Enforcement OfficersSearch Warrants for NH Law Enforcement Officers
Search Warrants for NH Law Enforcement Officers
RichardTheberge
 
Corporate Governance : Scope and Legal Framework
Corporate Governance : Scope and Legal FrameworkCorporate Governance : Scope and Legal Framework
Corporate Governance : Scope and Legal Framework
devaki57
 

Kürzlich hochgeladen (20)

Receivership and liquidation Accounts Prof. Oyedokun.pptx
Receivership and liquidation Accounts Prof. Oyedokun.pptxReceivership and liquidation Accounts Prof. Oyedokun.pptx
Receivership and liquidation Accounts Prof. Oyedokun.pptx
 
fnaf lore.pptx ...................................
fnaf lore.pptx ...................................fnaf lore.pptx ...................................
fnaf lore.pptx ...................................
 
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdfV.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
 
It's the Law: Recent Court and Administrative Decisions of Interest
It's the Law: Recent Court and Administrative Decisions of InterestIt's the Law: Recent Court and Administrative Decisions of Interest
It's the Law: Recent Court and Administrative Decisions of Interest
 
Presentation (1).pptx Human rights of LGBTQ people in India, constitutional a...
Presentation (1).pptx Human rights of LGBTQ people in India, constitutional a...Presentation (1).pptx Human rights of LGBTQ people in India, constitutional a...
Presentation (1).pptx Human rights of LGBTQ people in India, constitutional a...
 
Genocide in International Criminal Law.pptx
Genocide in International Criminal Law.pptxGenocide in International Criminal Law.pptx
Genocide in International Criminal Law.pptx
 
Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...
Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...
Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...
 
The Work Permit for Self-Employed Persons in Italy
The Work Permit for Self-Employed Persons in ItalyThe Work Permit for Self-Employed Persons in Italy
The Work Permit for Self-Employed Persons in Italy
 
Patenting_Innovations_in_3D_Printing_Prosthetics.pptx
Patenting_Innovations_in_3D_Printing_Prosthetics.pptxPatenting_Innovations_in_3D_Printing_Prosthetics.pptx
Patenting_Innovations_in_3D_Printing_Prosthetics.pptx
 
Lifting the Corporate Veil. Power Point Presentation
Lifting the Corporate Veil. Power Point PresentationLifting the Corporate Veil. Power Point Presentation
Lifting the Corporate Veil. Power Point Presentation
 
快速办理(SCU毕业证书)澳洲南十字星大学毕业证文凭证书一模一样
快速办理(SCU毕业证书)澳洲南十字星大学毕业证文凭证书一模一样快速办理(SCU毕业证书)澳洲南十字星大学毕业证文凭证书一模一样
快速办理(SCU毕业证书)澳洲南十字星大学毕业证文凭证书一模一样
 
From Promise to Practice. Implementing AI in Legal Environments
From Promise to Practice. Implementing AI in Legal EnvironmentsFrom Promise to Practice. Implementing AI in Legal Environments
From Promise to Practice. Implementing AI in Legal Environments
 
San Remo Manual on International Law Applicable to Armed Conflict at Sea
San Remo Manual on International Law Applicable to Armed Conflict at SeaSan Remo Manual on International Law Applicable to Armed Conflict at Sea
San Remo Manual on International Law Applicable to Armed Conflict at Sea
 
Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...
Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...
Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...
 
在线办理(UNE毕业证书)新英格兰大学毕业证成绩单一模一样
在线办理(UNE毕业证书)新英格兰大学毕业证成绩单一模一样在线办理(UNE毕业证书)新英格兰大学毕业证成绩单一模一样
在线办理(UNE毕业证书)新英格兰大学毕业证成绩单一模一样
 
Integrating Advocacy and Legal Tactics to Tackle Online Consumer Complaints
Integrating Advocacy and Legal Tactics to Tackle Online Consumer ComplaintsIntegrating Advocacy and Legal Tactics to Tackle Online Consumer Complaints
Integrating Advocacy and Legal Tactics to Tackle Online Consumer Complaints
 
The Future of Criminal Defense Lawyer in India.pdf
The Future of Criminal Defense Lawyer in India.pdfThe Future of Criminal Defense Lawyer in India.pdf
The Future of Criminal Defense Lawyer in India.pdf
 
Anti Money Laundering & know client.pptx
Anti Money Laundering & know client.pptxAnti Money Laundering & know client.pptx
Anti Money Laundering & know client.pptx
 
Search Warrants for NH Law Enforcement Officers
Search Warrants for NH Law Enforcement OfficersSearch Warrants for NH Law Enforcement Officers
Search Warrants for NH Law Enforcement Officers
 
Corporate Governance : Scope and Legal Framework
Corporate Governance : Scope and Legal FrameworkCorporate Governance : Scope and Legal Framework
Corporate Governance : Scope and Legal Framework
 

Company-Law.pptx

  • 2. COMPANY AS A FORM OF BUSINESS ORGANISATION • What is ‘company’? • Why do we need business organisation? • Name types of business organisations. • Are all companies listed on Bursa Malaysia?
  • 3. SEPARATE LEGAL PERSONALITY • What is separate legal personality? • The law treat a company as being a separate person from its members and those who manage its operations. • Company can incur and receive obligation. • Company can hold property on its own name. • Company can be a plaintiff or defendant in court proceeding
  • 4. SEPARATE LEGAL PERSONALITY • What are the consequences of treating the company as a separate legal entity? • A company’s obligations and liabilities are its own, and not those of its participants. • A company can sue and be sued on its own name. • A company has perpetual succession. • A company’s property is not property of its participants. • A company can contract with its controlling participants
  • 5. PIERCING THE CORPORATE VEIL • What is corporate veil? • What is meant by ‘lifting the corporate veil’ or ‘piercing the corporate veil’? • When have the courts pierced the corporate veil? • Where the corporate form is used to avoid an existing legal duty. • Where the company is acting as the agent or partner of the controller. • Where the laws or statutes expressly lift the corporate veil. (eg: s36, s304, s 67(5) of Companies Act. Also in Income Tax Act 1967.
  • 6. LIMITED LIABILITY • What is limited liability? • A member of a company limited by share is usually not required to contribute amounts from their personal wealth, beyond the subscription price of their shares, to meet the debts of a company. • Why? • Encourage risk taking and entrepreneurial behaviour • Decrease the need for shareholder to monitor the managers • Provide incentive for managers to act efficiently
  • 7. ADVANTAGES OF CORPORATE FORM • Limited liability • Perpetual succession • Free transferability of interest • Companies as large commercial enterprises • Corporate law as a standard form contract between participants • Company charges • Taxation consideration
  • 8. DISADVANTAGES OF CORPORATE FORM • Establishment and administration cost • Publicity • Public law obligation
  • 9. PUBLIC AND PRIVATE COMPANIES • PRIVATE COMPANY: • Sdn Bhd • Must have restriction to transfer its share • Must not more than 50 shareholders • Not allowed to be listed in share market – no public shareholders • PUBLIC COMPANY: • Bhd • Purpose – to have public shareholders • Subject to additional obligation such as to maintain register of substansial shareholder (s 69L CA)
  • 10. CORPORATE GROUP • What are corporate groups? Why? • Group relationship. • A corporation is deemed to be related to another where the corporation: • Is the holding company of the other corporation • Is a subsidiary of the other corporation • Is a subsidiary of the holding company of the other corporation • Subsidiary if: (section 5) • The holding company controls the composition of the subsidiary board • Control more than one-half of the voting power • Hold more than one-half of the issued capital
  • 11.
  • 12.
  • 13.