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Advantages And Disadvantages Of An Incorporated Company

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In my opinion, I think they should incorporate a company rather than register a partnership. According to S14(1)CA 1965, subject to this Act any two or more persons associated for any lawful purpose may by subscribing their names to a memorandum and complying with the requirements as to registration form an incorporated company. The reason I suggested to them to form a incorporated company is body corporate. According to Saloman v Saloman, the court held that incorporation of the company creates a separate legal personality. However, the next reason to form an incorporated company is perpetual succession. According to Re Noel Tedman, even though all the directors and shareholders were dead the company still existed. There are several types of companies under the Companies Act 1965, which are private company, public company, company limited by shares, company limited by guarantee, company limited both by shares and guarantee and unlimited company. According to S4 CA 1965, private company means that any …show more content…

Refer to S16 CA1965, they should provide the incorporation documents lodged to CCM. The first required document is original Memorandum and Article of Association, which shall be affixed at the Inland Revenue Board’s stamp office for RM100 each stamp. It shall indicate inside the name of first directors and secretaries, and shall be authenticated by shareholders while witnessed by other. Under S30 CA 1965, Table A of the Fourth Schedule can be acted as the model of constructing the Article of Association of the company, S30 CA 1965. According to S15(1) CA 1965, the articles of association of private company include restrict the right of transferring the shares within company, number of members must not exceeding fifty, prohibit inviting the public to subscribe the company’s shares or to deposit money with the

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