Summary Best Practices for Managing Public Companies www.ssm.com.my
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One Line
Public companies limited by guarantee must ensure good governance and financial transparency to mitigate risks of misuse, money laundering, and terrorism financing.
Slides
Slide Presentation (14 slides)
Key Points
- SBMJ (Syarikat Berhad Menurut Jaminan) is a public company incorporated under the Companies Act 2016 based on certain criteria.
- SBMJ is exposed to the risk of misuse due to its reliance on members who agree to pay a fixed amount if the company is dissolved.
- Best management practices for SBMJ include good governance, financial transparency, and risk management.
- Directors of SBMJ should ensure good corporate governance, financial management, and risk management.
- SBMJ should comply with anti-corruption policies and practices.
- Directors of SBMJ have responsibilities in terms of good governance, financial management, and compliance with the Companies Act 2016.
- SBMJ should be cautious about potential misuse by individuals responsible for daily operations, as well as activities related to money laundering and terrorist financing.
- SBMJ should practice transparency and accountability in financial management and ensure that funds are used for the stated objectives.
Summaries
23 word summary
Public companies limited by guarantee (SBMJ) must address risks such as misuse, money laundering, and terrorism financing through good governance and financial transparency.
57 word summary
Public companies limited by guarantee (SBMJ) face risks such as misuse, money laundering, and terrorism financing. To manage SBMJ effectively, directors should practice good governance, ensure financial transparency, prevent corruption, and fulfill their duties. Compliance with accounting standards, internal controls, and reporting requirements is crucial. Adherence to best practices is essential for maintaining the integrity of SBMJ.
134 word summary
Public companies limited by guarantee (SBMJ) face the risk of misuse, money laundering, and terrorism financing due to their global nature and involvement in cash transactions. To effectively manage SBMJ, directors must practice good governance, ensure financial transparency and accountability, prevent corruption, and fulfill their duties. Directors have responsibilities such as acting in the company's best interests, complying with accounting standards, establishing internal controls, and recording transactions. Financial transparency is crucial, including transparency in supplier selection and expenditure transactions. Anti-corruption principles outlined by the Corporate Integrity Pledge should be followed. Directors must comply with legal requirements, obtain permission for land transactions, and fulfill reporting requirements. Non-compliance can result in penalties and legal consequences. Directors are encouraged to provide voluntary business review reports. Adherence to best practices is essential for maintaining the integrity of SBMJ.
332 word summary
Public companies limited by guarantee (SBMJ) face the risk of misuse and are vulnerable to money laundering and terrorism financing due to their global nature and involvement in cash transactions. To effectively manage SBMJ, directors must practice good governance, ensure financial transparency and accountability, prevent corruption, and fulfill their duties and responsibilities.
Directors of SBMJ have various responsibilities, including acting in the best interests of the company, using their knowledge and skills to manage effectively, complying with accounting standards, establishing internal controls and risk management procedures, recording all transactions, and complying with legal requirements. They are encouraged to obtain international certification such as the Humanitarian Accountability Partnership.
Financial transparency and accountability are crucial for directors of SBMJ. They should practice transparency in supplier selection and expenditure transactions, follow established regulations, demonstrate open leadership, and disclose financial performance and corporate governance in a timely manner.
To prevent corruption, SBMJ should adhere to five anti-corruption principles outlined by the Corporate Integrity Pledge (CIP). Directors are encouraged to sign the CIP voluntarily and comply with the provisions of the Malaysian Anti-Corruption Commission Act 2009.
Directors must ensure the company obtains permission from the Ministry of Domestic Trade and Consumer Affairs before acquiring or disposing of land, use the company's profits for stated purposes, comply with constitutional provisions, and fulfill annual reporting requirements.
Non-compliance with guidelines for SBMJ can result in offenses under the Companies Act 2016, penalties, and legal consequences. Directors and company secretaries should be aware of recommendations provided by the Financial Action Task Force (FATF) to protect against money laundering and terrorism financing.
Directors are encouraged to provide voluntary business review reports in their financial statements. The Companies Commission of Malaysia has issued guidelines for Business Review Reports to ensure comprehensive disclosure and reporting.
In conclusion, directors of SBMJ must adhere to best practices to effectively manage the company and mitigate risks. Compliance with legal requirements, financial transparency, corruption prevention, and responsible reporting are essential for maintaining the integrity and reputation of SBMJ.
517 word summary
Best Practices for Managing Public Companies: A Summary
A public company limited by guarantee (SBMJ) is a publicly incorporated company under the Companies Act 2016 (AS'2016) based on specific criteria. There are two categories of SBMJ: those with the word "Berhad" in their name and those without. SBMJ is vulnerable to misuse due to factors such as not having share capital and being guaranteed by members who agree to pay a fixed amount if the company is dissolved.
SBMJ is exposed to risks such as money laundering and terrorism financing due to its global nature, public trust, cash transactions, and involvement in activities related to these issues. To manage SBMJ effectively, directors must practice good governance, ensure financial transparency and accountability, prevent corruption, and fulfill their duties and responsibilities.
Directors of SBMJ must act in the best interests of the company, use their knowledge and skills to manage the company effectively, comply with accounting standards, establish internal controls and risk management procedures, record all transactions, and comply with legal requirements. They should also consider obtaining international certification such as the Humanitarian Accountability Partnership to ensure effective and ethical achievement of the company's objectives.
Financial transparency and accountability are crucial for directors of SBMJ. They should practice transparency in supplier selection and expenditure transactions, follow established regulations and make wise decisions, demonstrate open leadership, and disclose financial performance and corporate governance in a timely manner.
To prevent corruption, SBMJ should adhere to five anti-corruption principles outlined by the Corporate Integrity Pledge (CIP). Directors are encouraged to sign the CIP voluntarily to declare their opposition to corruption and their commitment to high ethical standards. They should also comply with the provisions of the Malaysian Anti-Corruption Commission Act 2009 and implement sufficient procedures outlined in the Anti-Corruption Practices Guidelines.
Directors of SBMJ have various responsibilities under the Companies Act 2016. They must ensure the company obtains permission from the Ministry of Domestic Trade and Consumer Affairs before acquiring or disposing of land, use the company's profits and income for the stated purposes, comply with constitutional provisions, and fulfill annual reporting requirements.
Failure to comply with the guidelines for SBMJ can result in various offenses under the Companies Act 2016, such as not obtaining approval for land ownership, not complying with licensing conditions, failing to submit annual statements, and not practicing good governance. Non-compliance with these guidelines can also lead to penalties and legal consequences.
The Financial Action Task Force (FATF) provides recommendations to protect SBMJ from involvement in money laundering and terrorism financing. Directors and company secretaries should be aware of these recommendations and take appropriate steps to prevent abuse and act responsibly if there are doubts about these issues.
Directors are encouraged to provide voluntary business review reports in their financial statements. The Companies Commission of Malaysia has issued guidelines for Business Review Reports to ensure comprehensive disclosure and reporting.
In conclusion, directors of SBMJ must adhere to best practices to effectively manage the company and mitigate risks. Compliance with legal requirements, financial transparency, corruption prevention, and responsible reporting are essential for maintaining the integrity and reputation of SBMJ.