Effects of Companies Act 2016

There are several effects of CA 2016, for example:
1. Incorporation of Companies

a. Easier process for companies to be incorporated
b. Introduction of single shareholder and single director companies
c. Common seal and share certificate becomes optional
d. Particulars required
e. Effect of CA 2016 on M&A (No more Memorandum and Articles of Association)
f. Effect of CA 2016 on Company Secretary at formation stage
g. No Annual General Meeting for private companies
h. Abolishing the unanimity rule for written shareholder resolutions


The above changes will reduce the administration cost incurred by the company.

2. Share Capital and No Par Value regime

a. CA 2016 impact on share capital
b. Introduction to No Par Value Regime
c. Implications on accounting
d. Double entry effects
e. Share premium account

3. Duties and responsibilities of Directors

a. Brief on Duties and responsibilities of Directors
b. Enhanced corporate governance requirements
c. Effects on audit


4. Impact on Accounting – Financial Statements and Report
a. Requirements on Approved Accounting Standards and its effect on Financial Statements
b. System of internal control
c. Disclosure requirements in financial statements
d. Contents of Directors’ Report
e. Time allowed for sending out copies of financial statements and reports


5. Impact on Auditors

a. Provisions relating to Private Company
b. Appointment of auditors
c. Terms of office
d. Provisions relating to Public Company
e. Appointment of auditors
f. Terms of office
g. Auditor’s remuneration
h. Procedure to appoint auditor
i. Removing auditor from office
j. Resignation of auditor (including rights of resigning auditor)
k. Attendance of auditors where financial statements are laid
l. Audit exemption clause in CA2016