BREAK

Sorry guys,   break from bloggin' for the time being...

Next to come.. I'll share some tips on database data mining on readily available application on your pc...... php & mysql, ms access and even ms exel (some of which may never before being shared)

(1) Create a NUMBER TO WORD translator, in any language/dialect that you want, make your own application add-ons and have it turn into a customized formula?

With that you will save time and avoid making error every each time you write number into words. All you have to do is to strike your custom formula and the word is written puuurfectly.

It can be used in cheque writing, Invoicing etc...

OPERATOR STESEN MINYAK KERUGIAN SETIAP KALI HARGA MINYAK TURUN

Cara terbaik untuk menyokong peniaga stesen minyak adalah untuk membolehkan mereka beroperasi secara “consignment-stock basis “ daripada harus membeli minyak/bahan api terlebih dahulu.

Petrol Dealers Association of Malaysian (PDAM) tidak menghadiri mesyuarat berhubung harga minyak yang dipengerusikan oleh Menteri KPDNKK Datuk Hasan Malek Jumaat lepas, kerana ia tidak akan membantu menyelesaikan masalah mereka.

Gambar Hiasan (a)

Menurut agenda pertemuan itu, salah satu topik yang mereka akan bincang adalah berkenaan kerugian yang dialami oleh peniaga petrol semenjak Putrajaya kuatkuasakan APM (Automatic Price Mechanism)

Presiden PDAM berkata beliau telah bercakap kepada Kementerian Kewangan dan Pejabat Perdana Menteri sejak dua tahun lalu mengenai masalah mereka namun demikian belum apa-apa yang telah dilakukan terhadap masaalah yang berkaitan.

Menurut Presiden PDAM, stesen minyak serta-merta akan mengalami kerugian sebanyak RM20,000 Hingga RM100,000 setiap kali harga bahan api yang lebih rendah diumumkan.

Ini adalah kerana mereka telah membeli minyak daripada syarikat pembekal minyak csecara tunai (pendahuluan) pada harga yang lebih tinggi.

Beliau juga memberitahu bahawa cara terbaik adalah beroperasi “on a consignment stock basis, di mana mereka hanya membayar syarikat pembekal minyak berdasarkan kepada kuantiti yang mereka jual.

Dengan pelaksanaan sistem berasaskan consignment stock basis, peniaga petrol tidak perlu membayar wang pendahuluan kepada syarikat pembekal minyak untuk mendapatkan stok minyak. Sebaliknya, mereka mengumpul komisen pada jumlah yang mereka telah dijual.

Sistem semasa yang dipraktikkan bagaimanapun, memaksa peniaga petrol untuk membeli cara “Prepaid” untuk stok minyak, sebagaimana yang ditentukan oleh syarikat pembekal minyak dan itu mendedahkan dealer kepada risiko kewangan sekiranya harga minyak turun.

Dalam artikel sebelum ini juga telah diterangkan bagai mana Syarikat pembekal minyak kepada stesen minyak sudah mengenakan atau mengecaj komisen yang diterima oleh stesyen minyak saat invois bekalan dicetak, pembayaran dilakukan sebelum minyak dipam kedalamtangki storan stesyen minyak.

Namun komisyen seperti yang dipersetujui diperolehi oleh peniaga minyak tidak serupa atau sama nilainya dengan apa yang dicaj atau dikenakan oleh syarikat pembekan binyak atas sebab-sebab seperti (a) harga minyak turun dan (b) tumpahan (d) Pengluapan  dan sebagainya.

Gambar Hiasan (b)

Selagi system yang ada sekarang masih dikuatkuasakan selagi itulah pihak peniaga minyak  distesen minyak akan mengalami kerugian komisen TIDAK SEPERTI apa yang mereka harus terima ia itu komisyen berasaskan unit liter yang mereka jual.

Minyak dibayar tunai oleh pengusaha stesen minyak sebelum mereka menjual minyak kepada pengguna dan hak milik telah jatuh kepada mereka saat minyak dibayar dan dipindah ke tangki storan stesen namun demikian mereka tidak punya hak menentukan harga jualan minyak selain harga jualan yang ditetapkan oleh kerajaan walaupun mereka terpaksa menjual dibawah harga tiap liter yang mereka harus perolehi mengikut perjanjian.

Dalam kata lain, komisen yang dicatit telah didibayar oleh syarikat pembekal minyak dalam invoisnya jauh lebih besar dari komisen yang sebenarnya dipungut atau diterima oleh peniaga di stesen minyak.

Peniaga petrol kecil di kawasan luar bandar adalah yang paling terdedah dengan risiko kerugian dan boleh memaksa menutup operasi dan akan menyulitkan pengguna. 

KESAN TURUN DAN NAIKNYA HARGA MINYAK KEPADA PENGUSAHA STESEN MINYAK

Contoh : Rujuk Rajah diatas :

Pembekal dan wakil pengedar minyak (Pengusaha stesen minyak yang mengedar RON dan disel), mendapat komisen jualan berdasarkan kuantiti (liter) jualan.

Sebagai contoh komisen sebanyak RM0.154 bagi setiap liter bahan yang di jual.

Komisen ditetapkan mengikut kuantiti (liter ) dan bukan komisen keatas nilai ringgit jualan.

Sekiranya kos belian bagi setiap liter naik ( Graph - Bar Kedua) maka pulangan keatas setiap RM1.00 yang dilabur turun dari RM0.0877 ke RM0.0791

Di sebaliknya akan berlaku sekira kos belian minyak turun - (Graph - Bar Ketiga). Keuntungan ketas setiap satu ringgit yang dilabur keatas kos belian minyak akan naik dari RM0.0877 ke RM0.0936.

Pembekal dan pengedar ada makanisma tertentu untuk selaraskan komisen jualan supaya pulangan pelaburan keatas kos belian itu tidak merugikan pengusaha stesen minyak.

Walaubagaimanapun sekira kos belian setiap liter minyak naik maka pulangan kasar pelaburan untuk tiap satu ringgit yang dilabur akan menurun. 

Apabila pulangan kasar pelaburan (GP) turun maka pulangan bersih (NP) juga akan terjejas turun kerana stesen akan berhadapan dengan kos tetap operasi seperti gaji, KWSP, SOCSO pekerja, elektrik yang tidak turun mengikut kuantiti jualan.

Walaupun pembekal minyak pempunyai makanisma yang tertentu untuk selaraskan pulangan kasar pelaburan keatas setiap ringgit yang dilabur untuk beli minyak namun makanisma tersebut masih bergantung kepada “komisen jualan untuk tiap” dan ini sudah tentu merugikan pengusaha stesyen.

Secara teknikal setelah minyak dihantar ke stesen maka nilai komisyen yang dibelanjakan oleh syarikat pembekal sudah berkalau/wujud nilainya pada saat tempahan/order dibuat oleh stesyen minyak kerana keuntungan bagi setiap liter penjualan yang dilakukan oleh stesen sudah ditetapkan oleh pembekal minyak dan perbelanjaan komisyen tersebut tercatat sebagai perbelanjaan yang dibenar mengikut (seksyen 33 Akta Cukai Pendapatan).

Namum demikian nilai komisyen tersebut boleh berbeza dengan apa yang di perolehi oleh stesen minyak kerana stesen minyak mengira mengikut kuantiti minyak yang keluar dari muncung pump semasa memindah minyak ke kenderaan pelangan.

Alasan yang biasa adalah berkalu mengeluapan/Evaporation semasa minyak dipindah dari lori pembawa minyak. Tidak dinafikan bahawa pembekal minyak menyediakan suatu kuantiti yang lebih untuk hadapi masaalah ketirisan yang dijangkakan.

Pengeluapan (kecuali tumpahan dan ketirisan yang dapat dinilaikan kerugiannya) semasa pemindahan dari lori ke tangki storan minyak di stesen dan semasa pengsetoran sehingga ianya keluar dari muncung pam sebelum masuk ke tangki kenderaan pelanggan amat mustahil untuk dibuktikan dengan mata kasar. Maka wujud lah perbezaan dari apa yang dikira secara virtual sepertimana yang di catit sebagai komisyen yang telah dibayar kepada stesen minyak oleh pembekal.

Minyak yang dihantar oleh pembekal kepada pengusaha stesen ditempah dan di invois dan diminta untuk dibayar secara tunai sebelum lori membawa minyak memindahkan minyak kedalam tangki storan di stesen. Ini bermakna selepas minyak itu dibayar maka PEMILIKAN MINYAK berpindah tangan kepada pengusaha stesen dan BUKAN MILIKAN pembekal lagi dan boleh dijual dengan harga yang kompotitif tidak mengikut harga yang ditetapkan oleh kerajaan, sepertimana yang berlaku di Negara lain seperti New Zealand dsb.

Maka tidak adillah mengira nilai pendapatan komisyen yang diperolehi oleh stesen minyak berdasarkan nilai yang di caj  oleh pembekal minyak  (Untuk tujuan pengiraan perbelanjaan yang dibenar dalam pengiraan cukai) sedangkan nilai sebenar adalah berdasarkan minyak yang keluar dari muncung pam semasa pelanggan membeli minyak.

Walaupun pemantauan keatas stok minyak dikalukan rapi untuk memastikan tahap ketirisan (ketepatan kuantiti  dan gerak/movement stok) minyak namun ianya hanyakan merupakan bukti virtual sahaja dan tidak mustahil tidak dibenarkan untuk ditolak sebagai perbelanjaan yang layak untuk tujuan percukaian.

Ketirisan virtual (tanpa bukti fisikal) sememangnya sudah termasuk dalam pengiraan walau bagaimana pun ianya belum pasti boleh diterima oleh pihak untuk tujuan percukaian kerana industri pengedar minyak (stesen minyak)  sudah punya piawaian purata industrinya yang tersendiri.  Jika keputusan operasi  yang ditunjukkan wujud perbezaan yang agak ketara dari purata industri maka pengiraan tersebut boleh di nafikan sebagai perbelanjaan dalam pengiraan cukai.

Rajah diatas menunjukan pembelian minyak (kos belian) stesen minyak dan penjualan bilamana kos belian harga minyak turun dan naik dan impaknya keatas pelaburan mereka berandaikan perkara berikut :-

1.                 Pengiraan diatas tidak mengambil kira ketirisan biasa/normal selepas pemindahan kedalam strran dari lori sehingga tahap minyak keluar dari muncung pam semasa jualan.

2.                 Komisyen ditetapkan pada 0.154 sen tiap satu liter oleh penbekal (seperti lazimnya tanpa mengira makanisma yang digunakan dalam menilai pulangan keatas pelaburan)

3.                 Tidak mengambil kira kos/perbelanjaan operasi yang agak tetap/Konstant - seperti gaji, elektrik, EPF, Socso,  (tidak naik atau turun secara ketara mengikut fluktuasi harga minyak) yang pasti menjejaskan kadar pulangan pelaburan sekira nilai jualan susut.

4.                 Stok awal atau baki stok minyak yang dibeli mengikut harga hari sebelumnya dianggap habis dijual pada hari esoknya (Memandangkan liter jualan melebihi stok awal)

5.                 Untuk tujuan analisa diatas, harga minyak naik dan turun setiap hari - samada naik berterusan atau turun berterusan.

(a)     JIKA HARGA MINYAK TURUN

• Dari rajah diatas dapat dipastikan bahawa kesan penurunan kos pembelian minyak akan menguntungkan pengusaha stesen minyak kerana pelaburan/kos pembelian minyak untuk 1 liter turun manakala komisyen yang diterima keatas 1 liter yang sama kekal adalah kekal sama.

• Kadar pelaburan keatas setiap ringgit akan memberi pulangan yang lebih tinggi.

• Manakala stok minyak (4000 Liter) yang dibawa kehadapan hari sebelumnya  yang dibeli dengan harga yang lebih mahal akan dicampur dengan 32000 liter stok minyak yang dibeli dengan harga 10 sen lebih murah dari hari sebelumnya memberi kesan 4000/32000 kali mahal dari harga kos belian minyak semasa.
  
  
• Penyimpanan stok yang tinggi (Liter yang banyak) melebihi dari kuantiti jualan harian akan mengundang risiko kerugian.
  
  
• Untuk mengelakkan keadaan sedemikain (risiko kerugian yang tinggi) maka  elok supaya tidak menyimpan stok minyak melebihi paras minimum re-oder level (suatu tahap minima stok minyak bila mana pesanan harus dilakukan untuk mengelak terputus bakalan untuk pelanggan). Sekiranya pesanan untuk stok baru dapat dilakukan ketahap minima tanpa menjejaskan bekalan kepada pelanggan dapat dilakukan maka ianya harus dilakukan untuk memaksimakan keuntungan pihak stesen minyak.
  
  
   

(b)     JIKA HARGA MINYAK NAIK

• Apabila harga minyak naik maka kos pembelian minyak untuk stesen juga akan naik.  Kos pelaburan untuk satu liter akan naik tanpa komisen naik kerana komisyen adalah berdasar kepada RM/liter yang ditetapkan (Kecuali berlaku penyelarasan mengikut mekanisma yang ditetapkan oleh Pembekal minyak seandainya berlaku kenaikan yang amat tinggi dan mendadak)
  
  
• Pulangan kasar keatas tiap ringgit yang di labur akan menyusut/turun berdasarkan alasan yang sama seperti yang terdapat dalam perenggan sebelumnya diatas.
  
  
• Menyimpan stok yang banyak (sekira ianya dibenar dilakukan tanpa sekatan oleh pihak pembekal dan ada ruang untuk menyimpan dalam kuantiti yang banyak (Tangki stroran) stok minyak yang dibeli dengan harga yang murah berbanding hari sebelumnya, boleh menguntungkan pihak stesen minyak walau bagaimana pun sekiranya harga jatuh pada hari esoknya maka pengusahakan berhadapan dengan kerugian.

(c)     KOS TETAP

          Bahagian diatas menumpukan kesan kenaikan dan penurunan kos langsung harga pembelian minyak kepada pihak pengusaha stesen minyak.

Ianya tidak termasuk kos tetap dan kos berubah dalam operasi seharian yang di belanjakan oleh pengusaha stesen minyak.

Kos yang agak tetap yang tidak berubah mengikut kuantiti jualan adalah seperti gaji, KWSP, SOCSO pekerja (Kecuali pekerja ditambah atau dikurang mengikut keperluan yang mendadak),  kos elektrik agak tetap walaupun ianya ada sedikit berubah mengikut keperluan penjanaan mengepam minyak dan penjanaan mesin pam angin untuk tayar kenderaan.

Kos promosi, latihan/kursus/mesyuarat (kos perjalanan dan penginapan)  CSR, lessen, permit, hadiah, derma insuran berbagai jenis, tumpahan minyak dan sebagainya tidak berubah secara mendadak sehingga dapat menjejaskan pulangan bersih (untung bersih) pengusaha stesen minyak kecuali ada kerugian yang berlaku di luar jangka seperti rompakan, kebakaran dan kemalangan yang boleh melibatkan kos yang agak tinggi.

  

Kesan turun dan naik nya harga minyak  kepada pengusaha tetap akan berlakau selagi kos harga minyak dipasaran turun dan naik.

Penyimpanan stok yang minima boleh memenimakan kedua-dua keadaan yang bertentangan itu.

Mungkin juga ada pengusaha yang ingin mengambil risiko tinggi untuk mendpat keuntungan yang agak besar dengan membeli stok minyak yang banyak (tertakluk kepada had yang dibenarkan oleh pembekal dan kemampuan/kapasiti tangki storan minyak) dengan harapan harga pasaran minyak akan naik.

Sistem harga minyak yang ditentukan oleh pengusaha minyak secara  kompititif, seperti yang terdapat di Negara New Zealand dan beberapa negara lain juga boleh diperkenalkan supaya dapat memberi manafaat kepada pengguna.

Wallahualam
Mohdar Ismail

  

WHY OUR OIL PRICE FLUCTUATES ? HOT AIR?

WHY OUR OIL PRICE FLUCTUATES? 

Our country is not exception to the forces that bring oil price up and down.

So what is that forces so powerful that it can affect everyone’s life globally? According to Thomas Landstreet "MERE WORDS DRIVE OIL PRICES DOWN"

1. On July 14, 2008, with oil prices at all-time highs of $144 a barrel, then-President Bush approached a microphone and announced that the executive moratorium on drilling on the  outer continental shelf  would expire.  Oil prices dropped 8% as he made the announcement and they never recovered.

2. Then after a violent 30% rally that September, Nancy Pelosi buckled and announced an end to the congressional moratorium on drilling.  Oil prices fell from $120 the day she made the announcement to $66 per barrel by December

3. Neither of these announcements actually ever manifested as anything more concrete than hot air. 


Mere words in Spanish and English say the same thing

4. The Bureau of Energy Management announced two weeks ago that for the first time since 1983, the U.S. government would allow seismic analysis of the outer continental shelf off of the southern Atlantic coast. 

5. Meanwhile, Mexico is hurriedly engaging foreign private companies to help them exploit their huge reserves.
Oil prices have a long way to fall if this continues.
6. Somehow, falling demand and rising supplies have failed to reduce oil prices. 

More than mere words in Mexico: Liberalization has begun

7. In December 2013 Mexican President Enrique Pena Nieto enacted constitutional reforms to end state-owned Petroleós Mexicanos’ (PEMEX) 75-year monopoly over oil. 

8. He then signed legislation on August 11, 2014 opening Mexico’s oil, gas and electricity industries to private and foreign companies. 

9. The U.S. is projected to surpass Saudi Arabia in production due to fracking.
10. But despite its abundance, oil obtained from fracking, it is not the answer to lower prices because it is so expensive to produce – $70 to $90 per barrel. 

11. According to Landstreet the framework is called Political Peak Oil is changing quickly. He predicted oil prices will hit $90 by Christmas barring any geopolitical crisis and a reversal of policy.
12. The investor ramifications are significant but the first place to start is to avoid heavily levered E&P fracking companies like Goodrich Petoleum. 

13. If the price of oil falls like he thought it will, the stock in the market will go much lower. 

14. Several ETF’s **  allow investors to short the commodity. Among them are: DUG and SCO. 

15. Many companies will benefit from a lower oil price. Gas station operators’ margins expand when oil prices fall as they hesitate to lower the retail price in such an environment.


16. How can we apply that of our own to the world? : ) You may say we are just peanuts compared to the major oil player and so does the *tiny mid-east country that spun the world economies inside out upside down all this while. :))))


WALLAHU ALAM

** ETFs (Exchange Traded Funds) are funds that track indexes like the NASDAQ-100 Index, S&P 500, Dow Jones, etc. 

When you buy shares of an ETF, you are buying shares of a portfolio that tracks the yield and return of its native index. 

The main difference between ETFs and other types of index funds is that ETFs don't try to outperform their corresponding index, but simply replicate its performance. They don't try to beat the market, they try to be the market.

PART 4 (I) - NEW COMPANIES ACT 1965 - NINTH SCHEDULE

PART 4 – (i)

(13) RASTIONALIZING AUDIT AND FINANCIAL REPORTING FRAMEWORK

EXISTING LAW

(a) THE NINTH SCHEDULE OF THE COMPANIES ACT 1965

EXISTING LAWS - NINTH SCHEDULE

Other than complying with FRS/IFRS/IAS, other Malaysian authorities like Securities Commission, MASB, Bank Negara  require Companies to adhere strictly to the Ninth Schedule of the Malaysian Companies Act 1965 pertaining preparation of companies Financial Statement.

The relevant section are s.169 which relates to Profit and Loss Accounts, Balance Sheet and directors’ report .

Section 169A- Relief From Requirements As To Form And Content Of Accounts and Reports

Section 326-Balance Sheets And Accounts

NEW COMPANIES ACT

• Reliance on approved accounting standards and to eliminate inconsistencies between Companies Act and accounting standards.
  
  
• Itrems under the Ninth Schedule which are not edequately delat with in the present approved accounting standards shall be considered by the Malaysian Accounting Standards (MASB) where ist is relevant, for inclusion in the approved accounting standard.

With that the entire Ninth Schedule of the Companies Act 1965 is entirely removed as it is largely repetitive  to and with the accounting standards.

The existing Ninth Schedule of the companies Act 1965 - https://www.ssm.com.my/acts/fscommand/act125sc009.htm

(b) The current Companies Act requires companies to comply with approved accounting standard.

- Accounts must be prepared in accordance to accounting standard approved by MASB

The New law require compliance with approved accounting standards

• Accounts must be prepared in accordance to accounting standards approved by MASB
  
  
  
• However in case certain authorities (eg. Security Commission or Bank Negara Malaysia) specify modification to the approved accounting standards based on FRA 1997, the financial statement must  be prepared in accordance to such modification issued by the authorities.

The new provision is to allow compliance framework to be streamlined with the true and fair view requirement in the event of authorized modifications are specified by regulators to the approved accounting standards.

(C) COMPANY AUDITOR

- A person shall not be appointed as auditor for a company if he is indebted to an amount exceeding RM2500

New Provision

• A person shall not be appointed as auditor for a company if he is indebted to an amount exceeding RM25,000

The above changes are made taking into consideration the inflation rate, the increase in the amount of indebtedness is reflective of current commercial situation.

To be continued - Appointment of Auditor

Mohdar Ismail

Company Secretarial Practitioner

NEW COMPANIES ACT - PART 3 (ii)

PART 3 (ii)

(12)  ANNUAL GENERAL MEETING (AGM)

EXISTING LAW

“Annual General Meeting”  is defined under Section 143 as

(1) A general meeting of every company to be called the "annual general meeting" shall in addition to any other meeting be held once in every calendar year and not more than fifteen months after the holding of the last preceding annual general meeting, but so long as a company holds its first annual general meeting within eighteen months of its incorporation, it need not hold it in the year of its incorporation or in the following year.

(2) Notwithstanding subsection (1) the Registrar on the application of the company, may if for any special reason he thinks fit so to do, extend the period of fifteen months or eighteen months referred to in that subsection, notwithstanding that such period is so extended beyond the calendar year.

(3) Subject to notice being given to all persons entitled to receive notice of the meeting a general meeting may be held at any time and the company may resolve that any meeting held or summoned to be held shall be at the annual general meeting of the company.

(4) If default is made in holding an annual general meeting—

(a) the company and every officer of the company who is in default shall be guilty of an offence against this Act;

Penalty: Five thousand ringgit.
Default penalty: One hundred ringgit; and

        (b) the Court may on the application of any member order a general

          meeting to be called

THE NEW LAW WILL INCORPORATE THE FOLLOWING

• Public companies are required to hold AGM every calendar year

• The law does not require private companies to hold AGM in every callender year.

• Meetings of private companies are known as meeting of members.

• The main method for private companies to make decision will be by way of written resolution.

As usual, AGM is still required for Public companies to ensure that the director use the AGM as a platform to report to shareholders.

However in the case of private companies (ie  SDN BHD) where in most cases its shareholders and directors are the same people, the AGM accorded through the AGM platform is no longer relevant.

However, notwithstanding the above. Shareholders still have the right to call for meeting when required.

RESOLUTION IN WRITIG (Circular resolution)

EXISTING LAW

Written Resolution requires unanimous vote before resolution could be passed.

That is, resolution must be signed by all members – in case of members resolution and all directors in case of directors resolution.

NEW LAW

• Provision relating to written resolution are only applicable to private companies.
  
  
• The required percentage to pass a resolution will be similar as though the resolution would be passed at a meeting of members.

This is deregulatory measures to provide flexibility for private companies to make decision more efficiently.

EXISTING LAW

Threshold allowing circulation of statement by members holding at least 5% of paid up capital or 100 members can request for circulation of statements.

NEW LAW

• Member’s power to require circulation of written resolution.

• Members having a total of 2.5% voting rights or 50 members wo have right to vote and for companies not having a share capital, members having a total of 2.5% voting right to be allowed to a statement to demand, alter or add items into AGM’s agenda. However, the company has the option of not to circulate the statements if they are frivolous, vexatious or defamatory and if such statement is not in the best interest of the company

Reason why the above provision are introduced

The lowering of the threshold would make it easier for members to be involved and to determine the agenda for deliberation in the general meeting.

It also enhances shareholders’ activism.

It provides an avenue of escalating external pressure to create change as well as to increase company’s efficiency.

MEETINGS AT TWO OR MORE VENUES

The current law allows

• A company may hold meetings within Malaysia at more that one venues using nay technology that allows members reasonable opportunity to participate

NEW LAW

 

• A company may hold meeting at more than one venues using any technology or method that enables member of the company an opportunity to participate and exercise their right to speak and vote at the meeting.
  
  
• Main meeting venue shall be in Malaysia where the chairperson is present.

The above proposal is made to accord flexibility to companies when holding meeting of members.

APPOINTMENT OF PROXIES

EXISTING LAW

Appointmnet of Proxy

• Proxy can be appointed from amongst members of the company.
  
  
• Otherwise proxies shall be an advocate, an auditor or person approved by the Registrar.

NEW LAW

Appointmnet of Proxy

• A member of a company may appoint another person as his proxy.
  
  
• Dispensation of qualification of proxy.

The above proposal is made to allow members to decide on who should be the most appropriate person to represent him at the meeting of members. 

The proposed amendment is very cautious to any possible abuse of right or power while maintaining flexibility to attain efficiency in companies.

  

To be continued on PART 3 –(iii)

Mohdar Ismail

Company Secretarial Practitioner

NEW COMPANIES ACT - PART 3 - ENHANCING SHAREHOLDERS ACTIVISM

PART 3 (i)

ENHANCING SHAREHOLDERS ACTIVISM.

Before we go further lets get some basic understanding of some basic terms used in this part.

What does it mean by “enhancing Shareholders Activism”?

“Enhancing” means intensify, increase, or further improve the quality, value, or extent of... according to Online dictionary.

“Shareholder” means the owner of one or more shares or stock in a corporation/company. Shareholder can be a natural person  (like you and me –  born raised and eventually die) or an artificial person (a body incorporated by the act of Laws eg a company – can own share or property, capable of suing and of being sued like you and me as natural person.) A company can own share in another company)

Member - Then who are those called “member” of a company?

The law did not use word “member” and “shareholder” to confuse us. The two words carry different/specific meaning in company law.

"Shareholder" holds or owns the shares in a company. On the other hand, a "member" is a person whose name appears on the Register of Members.  Just like in Persatuan as “Ahli Persatuan”. One cannot vote because he is not allowed by Persatuan's constitution for reason the Persatuan had agreed earlier in their constitution. Eg  A person did not pay up his annual subscription fee for three (3) consecutive times. He still have his right to be invited to a meeting but may not be allowed to vote.

For all practical purposes the words "shareholder" and "member" are used interchangeably. In normal course a shareholder will also be a member and a member will also be a shareholder.

We may come across a few exceptional cases where a "share­holder" may not necessarily be a "member" and a member may not neccesarily be a shareholder.

For example, companies limited by guarantee or unlimited companies having no share capital will have only mem­bers but no shareholders.

On the other hand, holder of a share warrant is a shareholder but not a member as his name is removed from the register of members immediately after the issue of such share warrant.

Similarly, a transferee (recipient of share in company) or legal representative of a deceased person may be a shareholder but he may not be member until he gets his name entered in the register of members.

On the other hand, the transferor or deceased person is a member so long as his name is on the register of members although he cannot be termed as share­holder.

“Activism” - the policy or action of using vigorous campaigning to bring about change and in this case in our Companies Act 1965.

Now we have to answer What it meant by “enhancing Shareholders Activism”?

Thus, summarily I can safely say that it is an act or rather a vigorous campaign by the authority, SSM and Corporate Law Review Committee to Promote Good Corporate Governance (improve policies) pertaining shareholder of a company.

(11) MEMBERS’ RIGHTS FOR MANAGEMENT REVIEW

        The following are new provision to be inserted in our Companies Act 1965

·        Members must be given reasonable opportunity at a meeting to question, discuss, comments or make recommendation on the management of the company.

·        Directors are only obliged to carry out the recommendation if it is passed as a special resolution and in the best interest of the company.

We do not have this provision in the existing Companies Act 1965. The reason or rationale why the above is made into our laws is to allow member of the company to provide iput on the management of the company.

However, in order to ensure that members do not abuse the above power given to them, the law also provide appropriate safeguard in that the directors are only compelled (duty bound/obliged) to carry out the recommendation if it is passed as a special resolution and that the recommendation made by the members is in the best interest of the company.

The laws safeguard director as well as member in order to promote good governance in a company.

To be continued on PART 3 –(ii) …..Next topic is on amendment to laws governng AGM (Annual General Meeting) of a company.

Mohdar Ismail

Company Secretarial Practitioner
* Posted unedited...here and there typo & grammer