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<\/figure>\n\n\nWhat is a director?<\/h2>\n\n\n
Directors are individuals appointed by the shareholders of the company to manage the affairs and business of the company. They are basically agents of the company- put in place to promote the success of the company for the benefit of the members of the company as a whole.<\/p>\n\n\n
Who can \/ cannot be a director?<\/h2>\n\n\n
In order to be qualified as a director in Malaysia<\/strong>, a person:<\/p>\n\n\n\n Read more here about the do\u2019s and don\u2019ts of a company director<\/a>.<\/p>\n\n\n Section 2 of the Companies Act defines a director to include any person occupying the position of director of a corporation by whatever name called and includes a person in accordance with whose directions or instructions the directors of a corporation are accustomed to act and an alternate or substitute director9<\/sup><\/a>.<\/p>\n\n\n\n A quick glance at the section will tell you that directors come in different shapes and sizes. Below are some of the more common titles given to a director that we come across in Malaysia.<\/p>\n\n\n Sleeping directors, also commonly known as non-executive directors are directors:<\/p>\n\n\n\n A shadow director<\/a> is a director who:<\/p>\n\n\n\n The court11<\/sup><\/a> further described such person12<\/sup><\/a> as a rather sinister individual who is in actuality a \u2018puppeteer\u2019, who pulls the strings and his puppets will dance to the music\/ tune he played.<\/p>\n\n\n A de facto director<\/a>, as noted by the court, is a person who assumes to act as a director. He is held out as a director by the company, and claims and purports to be a director, although never actually or validly appointed as such.<\/p>\n\n\n A nominee director is a director appointed by a particular group of people who have an interest in the company to represent their interest in the company. This usually occurs in parent-subsidiary companies, where the parent company will nominate a person to represent their interest\/ act on their behalf in the subsidiary company.<\/p>\n\n\n\n <\/a>1. Section 196 (2), Companies Act 2016. Looking for Company Secretary in Shah Alam:<\/p>\n\n\n\n\n
Types of Director in Malaysia<\/h2>\n\n\n
Sleeping Director<\/h3>\n\n\n
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Shadow Director<\/h3>\n\n\n
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De Facto Director<\/h3>\n\n\n
Nominee Director<\/h3>\n\n\n
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<\/a>2. Section 196 (4)(a), Ibid.
<\/a>3. Section 198(1)(a), Ibid.
<\/a>4. 1967.
<\/a>5. Section 198(1)(b), Companies Act 2016.
<\/a>6. Section 198(1)(c), Companies Act 2016.
<\/a>7. Section 198(1)(d), Ibid.
<\/a>8. Section 198(1)(e), Ibid.
<\/a>9. Section 2, Ibid.
<\/a>10. Section 196 (1), Companies Act 2016.
<\/a>11. Sazean Engineering & Construction Sdn Bhd v Bumi Bersatu Sdn Bhd [2018] 1 LNS 898.
<\/a>12. Walter Woon, Company law, Second Edition.<\/p>\n\n\n\n