Chapter 1 Intro to CA

8/20/2019 Chapter 1 Intro to CA

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ABBD3013FUNDAMENTALS OF CORPORATE ADMINISTRAT

INTRODUCTION TO CORPORATADMINISTRATION

Prepared by:

Hisa! Ha"api

01#$%&3&%&

isa!a"api'(!ai)*+,!


2/23

DEFINITIONS OF CORPADMINISTRA

• Administration: -e !a"a(e!e"- ,. -e a/airs ,. a",r(a"isa-i,"*

• Henri Fayol Fre"+ !i"i"( e"(i"eer , de2e),ped a (-e,ry ,. bsi"ess ad!i"is-ra-i,"4:

Ma"a(e!e"- 5 6P)a""i"(7 ,r(a"isi"(7 +,!!a"di"(7 +,,ra"d +,"-r,))i"(8*

• Dictionaries 9 ad!i"is-ra-i," 5 -e !a"a(e!e"- ,. -e-e ,r(a"isa-i,";*

• Ad!i"is-ra-i," i" -e context of management: A spebra"+ ,. !a"a(e!e"-*


3/23

DEFINITIONS CO

• Mary Parker Follet pi,"eer -e,ris- ," !a"a(e!e"- -!a"a(e!e"- 5 (e--i"( -i"(s d,"e by ,-er pe,p)e*

• Rosemary Stewart pi,"eer -e,ris- ," !a"a(e!e"- -!a"a(e!e"- 5 de+idi"( a- is -, be d,"e a"d (e--i"( d, i-;*

• Tis appr,a+ e!pasises the importance of the humelement of work *

• Henry Mint!erg a" i"-er"a-i,"a))y re","ed a+ade!a-,r ," bsi"ess a"d !a"a(e!e"-4:

C,!!"i+a-i," i-i" !a"a(e!e"- < I".,r!a-i,"a) R,)e


4/23

=HO ARE CORPADMINISTRA

• C,rp,ra-e ad!i"is-ra-,rs are:

• Media-,rs be-ee" -e +,!pa"y7 i-s b,ard ,. dis-a?e,)ders7 (,2er"!e"- a"d regulatory auth

• Pr,.essi,"a)s7 , a2e e@per-ise i" +,rp,ra-e )

+api-a) !ar?e-s7 se+ri-y )as a"d +,rp,ra-e (,2• Ad2is,rs ,. -e "oard of Directors #"$D% ," -

,. pra+-i+es -, be ad,p-ed i" +,rp,ra-e (,2er"a

Is +,rp,ra-e ad!i"is-ra-,r a

)ayer>


5/23

ROLES AND FUNCTIOCORPORATE ADMINISTR

• T, e"sre -e e))9bei"( a"d (r,- ,. -e +,!pa"y7 i-s BOs-a?e,)ders a"d -a- bes- !a"a(e!e"- pra+-i+es a"d ,rare .,)),ed*

• R,)es: A !i@-re ,. legal& 'uasi(legal& and managerial*

)* +egal responsi!ilities: de"ed i" +,rp,ra-e )a7 spe+i

re(ard -, -e !a--ers spe))ed ,- .,r +ar-ered se+re-ari-e Ma)aysia" C,!pa"ies A+- 1$%*

,* -uasi(legal o!ligation: arises i" is +apa+i-y as +,rp,ad2is,r a"d assis-a"- -, -e BOD*

.* Managerial role: e!er(es e" e is e"-rs-ed -, ),,?

spe+i+ isses7 ,r "der-a?e spe+i+ assi("!e"-s*


6/23

ANNUAL ENERAL ME

• S* )/. of the 0ompanies Act )123 #0A )123%

• I- is mandatory .,r e2ery +,!pa"y -, ,)d a" AM once e2ery +

year: s*)/.#)%

• Te resp,"sibi)i-y ,. +,"2e"i"( -e AM sa))y res-s i- -e dir

• Prp,se:9

oPr,2ides ,pp,r-"i-y -, !e!bers -, !,"i-,r7 sper2ise es

dire+-,rs ," !a--ers re)a-i"( -, -e ,pera-i," ,. -e +,!pa"y*

oi2es a +a"+e .,r !e!bers -, pass res,)-i,"s -r,( 2,-i"(

re)a-i"( -, -e +,!pa"y*

• Fai)re -, ,)d a" AM is a" ,/e"+e : s*)/.#/%#a%


7/23

ARTICLES OF ASSOCIA

• Pr,2isi,"s -a- re()a-e -e i"-er"a) !a"a(e!e"- a"d ,p-e +,!pa"y* F,r i"s-a"+e:o -e re)a-i,"sip be-ee" -e (e"era) !ee-i"( ,. sa

a"d b,ard ,. dire+-,rso -e !e-,d ,. app,i"-!e"- ,. dire+-,rs

o -e pr,+edre a- !ee-i"(s ,. -e +,!pa"yo -e pr,+edre .,r a)),-!e"- a"d -ra"s.er ,. sareso -e respe+-i2e ri(-s a"d ,b)i(a-i,"s ,. !e!bers

• Me!,ra"d! ,. Ass,+ia-i,"s MOA4 < basi+ +,"s-i--i,"a

+,!pa"y* C,"-e"- ,. MOA < see S* 1 ,. CA 1$%*


8/23

CORPORATE OGERN

• C,rp,ra-e (,2er"a"+e is a -er! -a- re.ers br,ad)y -, -e r)es7 pr,+)as by i+ bsi"esses are ,pera-ed7 re()a-ed7 a"d +,"-r,))ed*

• =e))9de"ed a"d e".,r+ed +,rp,ra-e (,2er"a"+e pr,2ides a s-r+-r)eas- i" -e,ry7 ,r?s .,r -e be"e- ,. e2ery,"e +,"+er"ed by e"se"-erprise aderes -, a++ep-ed e-i+a) s-a"dards a"d bes- pra+-i+es .,r!a) )as*

• Bes- pra+-i+e; < C,"-i",s pr,+ess ,. )ear"i"(7 .eedba+?7 ree+-i,",. a- ,r?s ,r d,es ",- ,r?4 a"d y;*

• I" re+e"- years7 +,rp,ra-e (,2er"a"+e as re+ei2ed i"+reased a--e"-,. i(9pr,)e s+a"da)s i"2,)2i"( abse ,. +,rp,ra-e p,er a"d7 i" s,a))e(ed +ri!i"a) a+-i2i-y by +,rp,ra-e ,+ers* A" i"-e(ra) par- ,. a" e+,rp,ra-e (,2er"a"+e re(i!e i"+)des pr,2isi,"s .,r +i2i) ,r +ri!i"a),. i"di2ida)s , +,"d+- "e-i+a) ,r i))e(a) a+-s i" -e "a!e ,. -e


9/23

DUTIES AND RESPONSIBOF CORP

ADMINISTRA• Car-ered se+re-aries are neither primarily orgastrategists nor functional #operational% specialists*

• "45 5H67 perform roles that assist the orgastrategists and facilitate functional specialists i" d-eir respe+-i2e resp,"sibi)i-ies*

• Roles of chartered secretaries or administrators arby:

1* -e s-a--es7

J* -eir b,ard ,. dire+-,rs a"d -,p !a"a(e!e"-7 a"d

3* -eir ,r(a"iKa-i,"*


10/23

THE SOURCES AND APPLICOF UIDES TO BEST PRA

• Te ICSA ebsi-e <

1* *i+sa*,r(*?

J* *!ai+sa*,r(*!y


11/23


ADMINISTRA• Te ICSA 14: +ar-ered se+re-aries a2e -, ?i"ds ,.0ore and Additional*

)* 0ore duties: legal o!ligations spe+ied by 2ari,s Aas -e Ma)aysia" C,!pa"ies A+- 1$%4 a"d +,"see"-a"d -,se i+ res)- .r,! bes- pra+-i+e*

•. H,e2er7 -e additional duties -e"d -, -a?e a sbs-aa!,"- ,. -e +ar-ered se+re-aries; -i!e *

•. Te a+-a) d-ies "der-a?e" a)s, depe"d ," -e pers,+apabi)i-ies7 pre2i,s ,r? e@perie"+e7 a"d a+ade!i+ b,. -e se+re-ary +,"+er"ed*


12/23


13/23


14/23


ADMINISTRA• Board and Committee Meetings• E"sres s!,,- ,pera-i," ,. -e +,rp,ra-e !ee-i"(s*

• De-er!i"es -e a(e"da ,. !ee-i"(s*

• i2es ",-i+e -, dire+-,rs a"d +,!!i-ees*

• Ms- be ?",)ed(eab)e i" +,rp,ra-e7 )e(a) a"d re()a-!a--ers si"+e -ey are .ree"-)y +a))ed dri"( !ee-i"

• Dra.-s a"d dis-rib-es !i"-es*

• E"sres !ee-i"(s .,)), +er-ai" se- ,. r)es*


15/23

BOARD AND COMMMEET

• Agenda < F,r!a)iKed p)a" ,. a- -,pi+s are -, be addredri"( -e !ee-i"(7 -e -i!e a)),--ed .,r ea+ -,pi+ a"dappr,pria-e a+-i,"s -a- +a" be -a?e" dri"( ea+ !ee-i"se(!e"-*

• +eadership < Te +airpers," ,. -e b,ard is -ypi+a))y a

e@perie"+ed7 se"i,r !e!ber ,. -e b,ard7 a"d s,)d be2ersed i" par)ia!e"-ary pr,+edres*

• Minutes < A ri--e" re+,rd ,. -e !ee-i"(s -e!se)2es7 +,py ,. e2ery-i"( said a"d a)) bsi"ess dis+ssed* Teseare i!p,r-a"- ",- ,")y .,r .-re !ee-i"(s7 e" a++ra-i".,r!a-i," .r,! pre2i,s !ee-i"(s !i(- be "e+essary7 es-ab)is +,rp,ra-e a++,"-abi)i-y*


16/23

BOARD AND COMMMEET

• Motions 9 A !e!ber !a?es a pr,p,sa)7 ,r !,-i,"7 a"d -e ,-er ,. -e b,ard 2,-e* I. i- (ar"ers e",( 2,-es7 -e !,-i," passes ae"-ered i"-, -e !i"-es .,r .-re i!p)e!e"-a-i,"* I. ",-7 i- is s-ii"-, -e !i"-es as ,)d bsi"ess* I" -e e2e"- -a- a)) !e!bers aa--e"da"+e7 -e ,r!7 ,r !i"i!! "!ber ,. a--e"di"( !e!bpr,+eed i- bsi"ess7 !ay s-i)) 2,-e ," !,-i,"s a"d res,)-i,"s* e@+ep-i," is i. -e !i"i!! "!ber ,. !e!bers reired by -e

",- i" a--e"da"+e*

• Ma8ority Rule 9 A)) !a,r de+isi,"s by -e b,ard !s- be appr,2)eas- a !a,ri-y ,. b,ard !e!bers* I" s,!e b,ards7 -e 2,-e !s"a"i!,s7 ,r "a"i!,s i- disse"-ers abs-ai"i"(* I" -is ay7+a"- be d,!i"a-ed by a si"()e !e!ber7 b- ra-er is a +,))e+-i2e-e i"di2ida) ri(-s ,. -e !e!bers pr,-e+-ed*


17/23


ADMINISTRA• Annual Meeting of Shareholders• Prepares a"d dis-rib-es pr,@y s-a-e!e"- a"d ",-i+e ,.

• Prepares a"d dis-rib-es a""a) rep,r-s*

• Ne(,-ia-es i- sare,)ders re(ardi"( -eir pr,p,sa)s

• He)ps dire+-,rs a"d !a"a(e!e"- prepare -, resp,"d -,

sare,)der es-i,"s a- -e !ee-i"( by +rea-i"( brie!a-eria)s a"d a)er-i"( dire+-,rs a"d !a"a(e!e"- -, isses7

• S,)i+i-s pr,@ies -, a+ie2e ,r! a"d -ab)a-es 2,-es


18/23

• Corporate Records

• ?",s a- d,+!e"-s a"d re+,rds "eed -, be +rea-ea- !a--ers -ey s,)d7 ,r s,)d ",-7 +,"-ai"*

• Mai"-ai"s re+,rds pr,-e+-i,"7 )i"(7 a++ess7 arra"(e!a++,rda"+e i- )a*

• "ders-a"ds -e si("i+a"+e a"d sbs-a"+e ,. a ide !a--ers7 a"d !ay "eed -, de2e),p pr,+edres -, assa++ra+y ,. !a"y di/ere"- -ypes ,. d,+!e"-s

• Mai"-ai" re+,rds ,. -e sbsidiary +,!pa"ies*


19/23

• Stoc Transfer

• Mai"-ai"s sare,)der re+,rds7 a"d pr,2idi"( .,r -e -ra"s.er ,r r,. s-,+? +er-i+a-es*

• I" !,s- !a,r +,rp,ra-i,"s7 ,e2er7 -is ."+-i," is a"d)ed by "i- ,r by a" ,-side -ra"s.er a(e"-7 i- -e C,rp,ra-e Se+re-ar-e +,rp,ra-e )iais,"*

• Securities Marets

• ser2es as -e +,rp,ra-e )iais," i- -e 2ari,s se+ri-ies !ar?e--e +,!pa"ys sares are )is-ed*

• Assres +,rp,ra-e +,!p)ia"+e i- s-,+? !ar?e- reire!e"-s*

• Prepares )is-i"( ,r ,-er !ar?e- a(ree!e"-s7 ",-i+es7 a"d ,-er d

a"d rep,r-s i+ -e +,rp,ra-i," !s- se"d -, 2ari,s se+ri-ie

,r !ar?e-s


20/23

• Director! O"cer! and Shareholder Concerns

• -e ad!i"is-ra-,r is a +e"-ra) pers," -, ,! dire+-,rs7 a"d sare,)ders -r" .,r pra+-i+a) assis-a"+e as e)) as

• 5owards Directors 9 pri!ary )iais," be-ee" -e +,rp,ra-dire+-,rs a"d !a"a(e!e"-

• 5owards $9cers ( Pr,2ides ser2i+es -, se"i,r ,+ers si!-,se pr,2ided -, dire+-,rs

• 5owards Shareholders ( -e pri"+ipa) +,rp,ra-e +,"-a+- .sare,)ders7 a"d !ay be ab)e -, i"e"+e , sare,)de!a"a(e!e"-s resp,"si2e"ess*


21/23

CORPORATE ADMINISTRATION ASUPPORT SERGICES OF ORANIS

• Based ," -e pre+edi"( e@p)a"a-i,"7 ,"e +a" "ders-a"dsignicance of the supporti;e role that corporateadministration pro;ides -, a" ,r(a"iKa-i,"*

• S+ +,rp,ra-e spp,r- ."+-i," is +r+ia) e" -radi-i,"a

,r(a"iKa-i,"s d, ",- +rea-e a par-i+)ar pr,.essi," -, "d-a- resp,"sibi)i-y*

• Car-ered se+re-arysip ,r ad!i"is-ra-i," as !,2ed .,r"der-a?e s+ a r,)e .,r de+ades*


22/23

CONCL

1* Te !a"a(erad!i"is-ra-,r must share with the directorthe organisation


23/23

%* Ad!i"is-ra-,rs !s- ensure that their management appconsistent i- -e +,!p)e@i-y a"d -rb)e"+e ,. -e bsi"e"2ir,"!e"-*

$* A" ad!i"is-ra-,r !s- help the directors to a;oid negatconse'uences .,r ,r(a"isa-i,"s*

#* C,rp,ra-e ad!i"is-ra-,rs are )i?e)y -, be in;ol;ed in ensursystems are in place to meet the need to demonstrateade'uate performance*

* He is reired -, interpret and apply the guides accordispecic circumstances e"+,"-ered i" -e ,r(a"isa-i,"*

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Chapter 1 Intro to CA