According company (Nee E 2017The purposes of NA is

Accordingto the old Companies it is enforced for incorporation to hold AnnualGeneral Meeting (AGM) once in every year (SSM 2017) However the t for AGM for private companies has been abolishedunder the N ct This means that when2 come into force efe 2017 all private companies arenot required to hold AGM in every year except required by the constitution or eithervalidly by any needed members (q3solutions2017 Thereis the different between the as all meetings of privatecompanies are known as conference of associates in the  The dprocess for prive companies can bee doneby the writtens However a resolution to eliminate an auditor or a director inthe past the expiration of his term of office cannot be as a written (Kensington 2017 Onthe other hand community companies remains the same that are compulsory to havean A G M in every q3solutions 2017)Thefluctuations in the now of the is important to ensure that the   of theboards are carried out and to run into their fiduciary Also the changes made inthe C 2016 is to enhance the internal control c governance as wellNee E 2017Formerly shareholders have incomplete true thus it is to encourage theshareholders involved in the daily operational of the company (Nee E 2017The purposes of NA is to run all therocessand pnecessary for the smootunning of a comp Under theA there are various policies that have impact on the private companies For instance all the necessaryprocess and re has to distribute distinctly such as the selection of auditor ‘s lodgment of aeturns and thetabling of aud’ financial statements as well as the selected by him to the andretired of is irrelevant to the directors but not tied to the an AGM privatecompaniesZico law 2015Besides that even though the associates do not have the advantageof the forum of a discuss the board of on such statements but they still have acorrect to obtain financial audited statements Zico law 2015)Furthermore the consentcondition of unanimous for member write resolution for pri copaniys has been detachedin the C 2017 It is to card a written that is signed by the required majorityof eligible members (Zico law 2015) When one of theeffect of the AG Ms is from the itallowed companies to cut cost of doing businesses As it is not necessary to payto appoint a company secretary at the point of incorporation (NeeE 2017)  Asthe privates do not need to set up GM then all the decision can be made by written and thee for the meeting cannotnot be directed through electronicallyNee E 2017) This can be clarified as the cost- effective measures Moreoverthe elimination of A G M for companiesthat drive the positive effect is to inspect the entire and simplifythe rules relating to as well as providesflexibility in managing affairs of companies in order to have the efficiencyincorporation process and procedure (IsaA 2017)