to the old Companies Act 1965, Annual General Meeting (AGM) is enforced to hold
by an incorporation once in each year (SSM, 2017). However, the
requirement for AGM for private companies has been abolished under the New Companies Act. When CA 2016 has come into force effective on 31 January
2017, all private companies are not required
to hold AGM in each year, except required by the constitution or either validly
required by any needed members (q3solutions,
2017). There is the different between the old act 1965 as all
meetings of private companies are known as meeting of members in the new act 2016.
The decisions process for private companies can be made done by the written
resolutions. However, a resolution to remove an auditor or a director before
the expiration of his term of office cannot be passed as a written resolution (Kensington, 2017).
On the other hand, public companies remains the same that are compulsory to hold
an AGM in each year (q3solutions,
changes in the new CA is important to ensure that the responsibilities of the boards
are carried out and to run into their fiduciary duties. Also, the changes made
in the CA 2016 is to enhance the internal control, corporate governance as well
(Nee. E, 2017). Formerly, shareholders have limited
right, thus it is to encourage the shareholders involved in the daily
operational of the company (Nee. E, 2017). The purposes of New Act is to provide all the process
and provisions necessary for the smooth running of a company.
Under the new
CA, there are various policies that have impact on the private companies. For instance, all the necessary
process and procedure has to distribute separately such as the selection of auditors and/ or directors,
lodgment of annual returns and the tabling of audited financial statements, but
not tied to the holding of an AGM for private companies (Zico law, 2015). Besides that, even though the members do
not have the benefit of the forum of a general meeting to discuss the board of
directors on such statements, but they still have a right to obtain audited
financial statements (Zico law, 2015). Furthermore, the requirement of unanimous
consent for members’ written resolutions for private companies has been removed
in the CA 2016. It is compulsory to pass a written resolution that is signed by
the required majority of eligible members (Zico law, 2015).