Datuk
1. COMPANY
Company means an incorporated obey to the Companies Act 1965 or obey to any corresponding previous enactment. Section 16(5) of the Companies Act 1965 states. Company also is a legal entity, allowed by legislation, which permits a group of people, as shareholders, to apply to the government for an independent organization to be created, which can then focus on pursuing set objectives, and empowered with legal rights which are usually only reserved for individuals, such as to sue and be sued, own property, hire employees or loan and borrow money. A society or association of persons, in considerable number, interested in a common object, and uniting themselves for the prosecution of some commercial or industrial undertaking, or other legitimate business. In many ways a company is similar to a sole trader or partnership, except that it exists as a separate legal entity from the owners (who are called shareholders). This means that in most circumstances, personal assets of the owners cannot be touched to pay for the debts of the company. Last but not least, a company is a voluntary association of person formed for the purpose of doing some business. A company is juristic entity. The company can sue and it can be sued. It has its own name and a separate legal entity, distinct from its members who constitute it. A company has its own property, the members cannot claim the property of the company as their own property.
2. Effect of Incorporation
Once an association becomes incorporated, it acquires a new legal status - it becomes a legal entity in its own right, separate from the individual members. In general, it has the following effects:
1. The association becomes a body corporate with perpetual succession :
A legal person or an artificial legal entity formed, created or existed within Malaysia or outside Malaysia pursuant to the Company Act 1965.
2. The association has perpetual succession :
A company’s existence continues
Company means an incorporated obey to the Companies Act 1965 or obey to any corresponding previous enactment. Section 16(5) of the Companies Act 1965 states. Company also is a legal entity, allowed by legislation, which permits a group of people, as shareholders, to apply to the government for an independent organization to be created, which can then focus on pursuing set objectives, and empowered with legal rights which are usually only reserved for individuals, such as to sue and be sued, own property, hire employees or loan and borrow money. A society or association of persons, in considerable number, interested in a common object, and uniting themselves for the prosecution of some commercial or industrial undertaking, or other legitimate business. In many ways a company is similar to a sole trader or partnership, except that it exists as a separate legal entity from the owners (who are called shareholders). This means that in most circumstances, personal assets of the owners cannot be touched to pay for the debts of the company. Last but not least, a company is a voluntary association of person formed for the purpose of doing some business. A company is juristic entity. The company can sue and it can be sued. It has its own name and a separate legal entity, distinct from its members who constitute it. A company has its own property, the members cannot claim the property of the company as their own property.
2. Effect of Incorporation
Once an association becomes incorporated, it acquires a new legal status - it becomes a legal entity in its own right, separate from the individual members. In general, it has the following effects:
1. The association becomes a body corporate with perpetual succession :
A legal person or an artificial legal entity formed, created or existed within Malaysia or outside Malaysia pursuant to the Company Act 1965.
2. The association has perpetual succession :
A company’s existence continues
References: Davies, Paul, Gower 's Principles of Modern Company Law, 6th Ed., (London: Sweet & Maxwell, 1997), page 3. Mas Anom Abdul Rashid, Siti Hajar Wan Mohamad, Wan Normila Mohamad, Zatul Himmah Abdul Karim (2008). Principles of corporate compliance. 2nd . Ed. Indian Institute of Technology Kanpur. (n.d.). What is a Company. In Incubation Retrieved July 12, 2013, from http://www.iitk.ac.in/siic/what.html.