Formation of Company
- Required Membership
- Two or more person should be associated to form the company
- Lawful Purpose
- Means that the company that you make is legal in front of the law. You cannot create such an illegal company
- Selection of Names
- The name of the company should be meaningful(not vague).
- Subscribing MOA & AOA
- The person should subscribes their names to MOA
- MOA is Memorandum of A Company, that includes:
- the name of the company
- the objectives of the company
- the powers of the company
- share capital clause
- AOA is Article of A Company, known as the constitution of the company. It is basically a set of regulations for internal management of the company
- Doctrine of Ultra Vires
- An administrative authority may not act or function in excess of its power. If he acts beyond his power, then his act would be unlawful and invalid
- However this rule is not applicable in Malaysian company law. Under section 20(1) of the Companies Act an ultra vires contract made by the directors of a company becomes valid
- This section protects the interests of the third parties who make business contracts with the company
- Lodge in Registrar of Companies
- Shall lodge the memorandum and the articles of the company with the Registrar
- Shall pay the registration fees
- Issue of Certificate of Incorporation
- After submitting the MOA & AOA and pay the registration fee, then the registrar will register the company and issues the Certificate of Incorporation
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