solution

QUESTION

A director undertakes personally to perform services as a director in a public listed company. Based on the Companies Act 2016, elaborate on the right of members, and the related procedure to inspect as well as request a copy of the service contract of the director.

KEY POINTS :

Right of member to inspect and request copy

Section 233 (1) Every copy of the contract required to be kept and shall be made available for inspection by: members holding at least 5 per centum of the total paid up capital (public company having share capital); or at least 10 per centum of members (public company not having share capital).

Section 233 (2) The members so entitled to inspect on request and on payment of such fee as may be prescribed shall be entitled to be provided with a copy of any such contract.

Section 233 (3) The copy shall be provided within seven days from the date the request is received by the company.

Section 233 (4) Every officer who refuses a request for inspection commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit.

Section 233 (5) In the case of any such refusal or default, the Court may, by order, compel an immediate inspection or, as the case may be, direct that the copy required be sent to the person requiring it.

HELP TO EXPLAIN DEEPLY KEY POINTS IN OWN WORDS .

* CORP GOVERNANCE EXPERT