The term Chief Executive Officer, or CEO, refers to the most senior executive decision-maker in the company. In many instances, the term CEO and Managing Director (MD) is used interchangeably. The Companies Act defines the CEO as a person who is principally responsible for the management and conduct of the company and its business. So [...]
The term managing director is often used to refer to a senior executive member of a company. The job scope of the managing director is not spelt out in the Companies Act. However, there is an option to list an individual as a managing director of a company in Bizfile+, the business filing portal of [...]
The Register for Registrable Controllers is a document that lists all controllers and beneficial owners of a company. A controller is an individual or an entity that has significant interest or significant control over the company. Significant interest is determined as an individual or an entity that: holds 25 per cent or more of [...]
The Register of Members is a record of all shareholders or members of a company. This may also be called the Register of Shareholders for companies that issue shares. In the register, the following information about the members of the company need to be maintained: Name of members Address of members Date of becoming a [...]
A director of a company is an appointed or elected person of the company who, along with the other directors, if any, are responsible for the implementation and direction of company policy. In essence, it is usually the shareholders who appoint the directors of the company and directors act as agents of the company. It [...]
A Politically Exposed Person (PEP) is someone who has been entrusted with a prominent public function. Due to the position that a PEP is in, there is a higher risk for that particular individual to be involved in corruption or bribery. This term is usually used in the financial services industry and its accompanying industries. [...]
An Annual General Meeting (AGM) is a mandatory meeting for all companies. The requirement is for companies to hold an AGM within 6 months from the end of their financial year. At the AGM, the directors of the company will present an annual report of the company, typically the financial statements, to the shareholders. This [...]
A shareholder is a natural person or a legal entity (i.e. another company) that owns at least one share of a company. They may also be referred to as stockholders or equity holders. Some people may refer to them as owners of the company. A company requires investment in the form of an injection of [...]
An Employee Stock Option Plan (ESOP) is a form of Employee Share Ownership. An Employee Stock Option Plan gives employees the right to purchase shares of the company at a predetermined price within a particular time frame. There are a variety of reasons for implementing an ESOP in a company. An ESOP may be used [...]
A sole proprietorship is a business that is owned by an individual. There are no other individuals involved in this business. The three characteristics that define a sole proprietorship are: 1) It is not a separate legal entity from the business owner When dealing with a sole proprietorship, it is akin to dealing with the [...]