FREQUENTLY ASKED QUESTIONS ON DUTIES AND RESPONSIBILITIES OF DIRECTORS OF A PRIVATE
LIMITED COMPANY (SDN BHD)
The Companies Act 2016, states that the term “Director” as a person appointed to the Board of a company. The Board of Directors is defined as a collective group of individuals elected by the shareholders of a company to manage the daily operations of the company. A company is an unnatural legal entity created by company law that requires natural persons to be a part of this entity to be in operations. It is through Directors that mainly the company performs its functions and the management of a company is assigned to a body of persons named “Board of Directors”.
Other definition of a Director is a person who administer, manages, controls and leads a team and is a member of a commercial company that supervises, strategizes the company’s direction and a policy maker of the company.
The qualification of a director is as follows:
1. A natural person
2. Must be at least 18 years old
3. Must not be someone who is has been disqualified as a director
Prior to an appointment as a director, he/she must:
• Make a statutory declaration on the given SSM prescribed Form 48A declaring that he/she has not contravened sections 25 and 130 of the Companies Act, 1965 (the Act)
• Consent to the appointment