company accounts and others accounts

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COMPANIES/CORPORATE ACCOUNT

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Page 1: Company Accounts and Others Accounts

COMPANIES/CORPORATE ACCOUNT

Page 2: Company Accounts and Others Accounts

INTRODUCTION

• Company is a legal entity and formation of the company is governed by Companies Act 1956 .

• A company is a legal entity of its own. I t can be sue and be sued in its own name.

• Neither the shareholders nor the directors may be sued in their personal capacities, unless they have given personal guarantees in that respect, or have acted beyond their authority

Page 3: Company Accounts and Others Accounts

COMPANY LIMITED BY SHARES

COMPANY LIMITED BOTH BY SHARES AND GUARANTEE

TYPES OF COMPANIES

Page 4: Company Accounts and Others Accounts

PRIVATE AND PUBLIC LIMITED COMPANIES

• A company which restricts the right to transfer its shares limit not to more than fifty the number of its members

• Prohibits :a) any invitation to the public to subscribe for

any shares or debentures of the companyb) to deposit money for fixed periods or payable

call whether bearing or not bearing interest• Must have the word “Sendirian Berhad” or Sdn Bhd

as the last word of its name and the name of a public company must end with the word “Berhad or Bhd”.

• Must apply a Certificate of Trading before it can commerce its business operation.

Page 5: Company Accounts and Others Accounts

MEMORANDUM AND ARTICLES OF ASSOCIATION

• The activities of a company are guided by the Memorandum and Articles Associations

• The Memorandum sets out the powers and the external activities of the company. Its must contain the name, the activity, the objects, adress and registered office, the liability of the members is limited by shares or guarantee and the amount of share capaital and its division.

• The Articles set out the reguations governing the internal working management of the company such as the powers of directors and the extent of a directors borrowing powers

Page 6: Company Accounts and Others Accounts
Page 7: Company Accounts and Others Accounts
Page 8: Company Accounts and Others Accounts

OPENING THE ACCOUNT OF A LIMITED COMPANY

While opening an account on company’s name the banker ask for: 1. Certifies copies of memorandum and articles of

association and certificate of incorporation 2. Name of directors3. Certificate of commencement of business4. Copy of resolution appointing the bank as

companies bank. The names of person authorized to operate that account along with the signatures

5. Specimen signatures of the authorised signatories and also the company’s rubber stamp

Page 9: Company Accounts and Others Accounts

DETERMINATION OF COMPANY’S MANDATE

• RESOLUTION OF BOARD OF DIRECTORSThe resolution appointing a bank as bankers to a company will remain in force until a new or amended resolution is passed by the board of directors. So that, the banker-customer relationship may ends

• APPOINTMENT OF RECEIVERA receiver may be appointed either by the court, or by the debenture holder in accordance with powers conferred by the debenture. The company assets will be frozen and taken over by the receiver

• LIQUIDATION OF COMPANYThe existence of a company terminates if it is wound up. This may due to its insolvency or failure to meet its creditors claims, its desire to amalgate with or be absorbed by another company

Page 10: Company Accounts and Others Accounts

Winding Up of The Business

Winding Up has 3 following ways:1.Compulsory Winding up by the

Court2.Voluntary winding up3.Winding up under supervision of

court

Page 11: Company Accounts and Others Accounts

OTHERS ACCOUNT

Page 12: Company Accounts and Others Accounts

ACCOUNTS OF CLUBS, SOCIETIES AND ASSOCIATIONS

• Coming under the Societies Act 1966.

• Register with the Registrar of Socities.

• The activities of the societies, clubs and associations are guided by their rules and regulations approved by the Registrar of Societies.

• Apart from the Certificates of registration, banks would normally see the resolution appointing certain members as officials as well as the resolution authorising these officials to open an account with the bank

Page 13: Company Accounts and Others Accounts

ACCOUNTS OF PROFESSIONALS

• Professional members such as doctors, lawyers, architects or accountants are not required to register their business with the Registrar of Business.

• Their activities are governed by the ordinance and rules of their own associations such as the Malaysian Medical Association, Bar Council, PAM or the Malaysian Institute of Accountants.

• When opening an account, the bank would request such profesional to furnish a photocopy of the certificate issued by the respective associations which enable him to conduct the business

Page 14: Company Accounts and Others Accounts

ACCOUNTS OF EXECUTORS AND ADMINISTRATORS

• The duty of the banker to pay cheques dran by the customer is determined by notice of the customer’s death, and all operations of the accounts ceased immediately.

• Those named in the will are called Executors and they must obtain the Probate from the court before they can act. A Probate is a certificate under the Court’s seal accompanied by the will of the deceased, authorising the Executor appointed under the will to administer the deceased’s estates.

Page 15: Company Accounts and Others Accounts

TRUSTEE ACCOUNTS

• A trustee is a person that hold the property for the benefit of some persons or the beneficiaries.

• A trust may arise out of the remaining properties of a deceased estate after the Executors or Administrators have executed their duties.

• In handling trustee accounts, bank has to be very cautions as it could be implicated in the breach of trust by a trustee and be liable for the abetment of that breach. Bank would require all trustees to jointly sign cheques drawn on the trustee account