How the Responsibilities of a Company Director Can Shape Its Own Aspects
Being the director is no easy feat. You lead, make critical decisions for the company, and more. People such as employees and other superiors look up to them. Their will can change the directions of a company in significant ways. Given how encompassing this role of leadership is, it is no surprise that directors should not perform as expected. It is (based on the Companies Act, company requirements, and the type of company), the company, its stakeholders, and its members will suffer as a consequence. Hence, it is crucial to understand the totality of responsibility and power entrusted to directors for you. This intends to grasp better how this position is meant to contribute to an organization or company. Know the various duties of a company director in Malaysia and how their role alone shapes a company’s many aspects.
An Overview of Responsibilities
Though the law has its own set of requirements on directors, each company may demand its own set of requirements. These demands are sometimes universal, as we will see in the following.
To Manage a Company’s Business and Affairs
Company directors will oversee the business and affairs of the company. Though they are assisted by other senior members and departments within the company, the ultimate decision execution often lies in their hands and approval. This means that they are the key decision-makers within a company. Then, the company will operate under ways that they have approved based on a balance of their discretion. This happens through brainstorming with others. In some cases, company directors are also involved in brokering business deals.
Company policies act as a guidebook for how things are meant to be run and how things are handled in specific instances. The company director has a hand in forming these policies and, ultimately, its publication for it to take full effect.
Statutory Requirements: Filing
A company director is also not exempt from filing when there is a statutory or law requirement involved. This usually requires liaison with specific agencies, typically governmental.
Calling for AGMs and EGMs
Annual General Meetings (AGM) and Extraordinary General Meetings (EGM), if the latter is warranted, are some of the most important meetings between company directors, relevant parties, and stakeholders, held annually. The director initiates this meeting process, and the company secretary will arrange the meeting and its invitations.
Company Comes First
A company director is legally required to act in the company’s best interest and not for his gains. This means that resources cannot be abused, dual loyalty and other actions that might implicate the company are not allowed and can be considered a breach of duty.
Nominee Director Services
People can come and go, and there will come a time when company directors surrender their positions and have others take over. It is important to note that while permitted to leave, the statutory requirements must still be fulfilled. If a director leaves and affects the numbers of directors required by law, the director or company must find a replacement before he can resign. Sometimes, a replacement is not readily available, and when this happens, a company can seek to employ nominee director services in Malaysia.
3E Accounting Malaysia is your one-stop, award-winning, and internationally-recognized corporate services provider that can help you fulfil that particular statutory requirement and at a reasonable rate. Consult us here today!