Once the company is successfully registered, it becomes a separate legal entity which is different from its directors, owners, and shareholders. The company could have its own right and asset, and also property. Meanwhile, the money and resources of the company could only be used for business purpose. Even the directors can’t use the company’s asset for private uses. (Guides to obligations of proprietary limited companies 2012).
According to the case, the four people want to establish a company which specializing in coffee and coffee related accessories. What they invest in company is no longer belong to their own. They can get the company’s shares depend on their ...view middle of the document...
According to Corporate law 2001, section 148, the company may trade under its Australian company Number (ACN) or it may register a company name(Corporate Law 2001) When the directors have decided the name of the company, they need to register the name. Once the name is registered, it is protected by law.
All the limited companies must have “limited ;( “Ltd”) “proprietary limited” ( “Pty”); or “Pty Ltd” as part of their names (Corporate Law 2001).The directors want to set up a proprietary company, So the company name should include “Pty”.
(1) A name is available to a company unless the name is identical (under rules set out in the regulations) to a name that is reserved or registered under this Act for another body (Corporate Law 2001).
We use the search engine in ASIC website to check the name availability. The result shows us that the Leaping Lizard coffee is not available. It has been registered by another coffees Shop in VA. The company should think of another name to use for business.
(1) The company is aim to sell the coffee and relevant thing with high quality and reasonable price. Therefore, the company picks the quality coffee from all over the world.
(2) The company is willing to become a company that is socially responsible and environmental friendly. So the company strongly chooses the coffee which is certified.
(3) The company wishes to become an international company which has different son companies over the world. The company now is expanding now; the Malaysia could be first oversea market.
(4) The company rules and manages the company itself with high standard rules and regulation. The main rules could be the combination of a Constitution and the Replaceable rules.
There are few requirements that the company should achieve to register a company in Malaysia. The Companies Commission of Malaysia (SSM) has strictly regulated that the authorized capital and paid-up capital are no less than RM100, 000 and RM2 respectively (How to register a company in Malaysia? n.d.).
The company must prepare many documents which are needed to be summited. Firstly, the company should think of a company name and then conduct the name search with SSM to see the name is available or not.
The copies of the directors’ passports are also needed. The directors of the company should sign on the Memorandum and Articles of Association (M&A) and other incorporation documents (How to register a company in Malaysia? n.d.).
The company should have more than 2 directors who are all over 18 years and are living in Malaysia. The director is not in debt and has not been in jail for a period of past 5 years. When the boards of directors are changed, including the change of living address, such change must be lodged with SSM within 1 month from the date of change (How to...