Company law gives legal identity to businesses and legalises its conducts. It provides the fundamental framework for corporate governance theory, governing corporate action to ensure that business units are working in the interest of their shareholders and other interested parties in the firm. The body of law comprises a firm's incorporation along with issuance of shares and proper management of finances. It further clarifies the rights and obligations of the directors and focuses on the principles.
Company law Malaysia also has to deal with disputes between the shareholders and the management and provides avenues for the resolution of those disputes. If an organization adheres to the rules on companies, it gains credibility, reduces its legal risks, and maximizes its long-term success amidst heightened market competition.
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