BCS302/03: Companies Act 2016 makes it illegal for any loan to be made by a company, or by any of its subsidiary companies: Corporate Governance Assignment, WOU, Malaysia


Wawasan Open University (WOU)

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BCS302/03: Corporate Governance

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1. Companies Act 2016 makes it illegal for any loan to be made by a company, or by any of its subsidiary companies, or by any other person under guarantee from, or on security provided by the company, or by any of its subsidiary companies to any director of the company. Discuss the exception of this provision in the Companies Act 2016.

2. In the case of a public company, explain the rights of members on the “service contract” of directors.

3. Describe FOUR (4) key areas of financial statements of a company that the audit committee would focus on.

4. Section 219 provides that a director has a general duty to disclose his or her direct or indirect interest in the company. Explain how the director could make such a disclosure.

5. Describe the main responsibilities of the Securities Commission in regulating the capital markets of Malaysia.

6. Explain the provision of the Companies Act 2016 which provides how a public listed company will hold its annual general meeting.

7. As the company secretary of a public listed company, discuss the best practices in respect of the effective functioning of the board as suggested in the Malaysian Code on Corporate Governance (MCCG, 2021).

8. Explain to the chairman of a public listed company the possible contributions of the company secretary to good corporate governance.

9. Discuss the rationale for integrating sustainability in business organizations and how to embed business sustainability as suggested in Bursa’s sustainability reporting guide.

10. Advise the shareholder of a public listed company on the information, or additional information, to look for in the company’s financial statement which is mandatorily required by the Companies Act 2016.

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