Management and Control

Management and control Issue to be highlighted | Relevant references | Recommendations | DIRECTOR’S DUTIES * Directors, Encik Zayed and Puan Hashimah do not understand about the Companies Act 1965 and his responsibilities | * Section 132 of Companies Act 1965 : director of a company shall at all times exercise his powers for a proper purpose and act bona fide (in good faith in the best interest of the company) * Shall exercise reasonable care, skill and diligence with the knowledge and experience * Duty to disclose all material information and various interest in the business conduct * Power to delegate | * Encik Zayed and Puan Hashimah must know what are their duties and responsibilities * All types of incorporated companies * The need to comply with the applicable standards and regulations * Enhance corporate governance * Matters regarding powers of the: * registrar of the company * management and administration of the company * Officers of the company * Accounting and auditing of the company | NO STANDARD OPERATING PROCEDURE (SOP) IMPLEMENTED * Withdrawal of company’s money made without proper documentation. * Decision and authorization made by the directors on its own without proper documentation * It will increase the risk of fraud and inconsistency in performing task * Give the auditor hard time to keep track of the transaction and movement of asset. | * Standard operating procedures (SOP) are a detailed explanation of how a policy is to be implemented. * Serve as framework for organizational policy – provide direction and structure * Written documentation of best practice * Tells what, how, when, why, and who * Provide foundation for: * job descriptions, * employee training * corrective action and discipline, and * Performance review. | Delima should implement standard operating procedure (SOP) : * Increase efficiency and consistence in performing task *