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Re: [ossig] Call for Participation: M'sia Open Source SoftwareIndustry Association -- ALL ARE INVITED

from the description for business activities,

the business entity should be a sdn bhd company (possibly also with msc
status). easier to participate in tenders and also to raise any required
financing. however that means that there is also a limit to the number
of shareholders (it is 50 at the moment) and restrictions on sale /
transfer of shares. cost of registration is about rm 2000. requires min
2 shareholder (companies or individuals), 2 directors (individuals
malaysian resident), 1 company secretary, 1 audit firm.

we can convert the sdn bhd to a berhad company (unlisted) if we want to
grow bigger - as it allows for a larger number of shareholders and there
is less restriction on transfer of shares compared to a sdn bhd. but
there is an additional requirement for a prospectus (don't know how much
this will cost). cost of registration is about rm 3500. requires min 2
shareholder (companies or individuals), 2 directors (individuals
malaysian resident), 1 company secretary, 1 audit firm.

in general associations (which comes under the societies act) do not
have share capital per se. which means that it is not possible to
register with mof, where 'bidang komputer' require a minimum rm10,000 in
share capital (plus full time employee competency). an association also
cannot obtain 'msc' status which is reserved strictly for companies.
also it cannot have subsidiaries. requires min 7 members.

msc status company is another long story but it should be okay, just
need to be persistent during the application process.

somebody mentioned earlier about annual fees. with a company, you cannot
enforce annual fees against a shareholder (e.g. must pay fees otherwise
get thrown out). but the company can charge administration or marketing
fees under a separate service agreement. this is a simple solution to
that concern.

for a short brief on incorporating a company in malaysia:

if anyone is interested in looking at the requirements for mof registration:

look for 'kod bidang pendaftaran bekalan dan perkhidmatan'

co-op i suppose is a 'dead' alternative, since it does not allow for
non-malaysian citizens. requires minimum 100 members to operate. so i
won't bother on that option.

Raja Iskandar Shah

----- Original Message -----
From: Tze-Meng Tan <tmtan@opensos.net>
Date: Friday, June 18, 2004 12:41 pm
Subject: Re: [ossig] Call for Participation: M'sia Open Source Software
Industry Association -- ALL ARE INVITED

> On Jun 18, 2004, at 11:33, Raja Iskandar Shah wrote:
> > sorry, confused again.
> no need to be sorry, good to ask if you are not sure
> I'm not exactly sure myself :)
> "first step to learning is admitting that you don't know anything" :)
> >
> > how is a trade federation / industry association different from an
> > advocacy group ?
> This is *my* understanding, not some definition
> An Advocacy Group is more like an NGO  examples MNCC OSSIG, 
> Greenpeace, 
> Amnesty International etc
> They are typically non profit and membership is almost always 
> individuals
> Their activities are aimed at making the general public aware of 
> their 
> cause
> And generally they do not "represent" their members in anything, 
> rather 
> the members work towards a common cause
> A Trade Federation/Guilthey also try to promote the "cause"
> Which is to help their members make money and improve their business
> The entity can be non profit but we want a for profit one because 
> I 
> envision we want to take this entity one or more steps further
> Members are business entities - Bhds, Sdn Bhds, Sole Proprietors, 
> Partnerships and individuals
> These organisations do also represent their members - lobbying 
> governments for better tax incentives or whatever they want
> However, we should want to take the entity a step or two further !
> The entity will go beyond the bounds of a typical Trade 
> Federation/Guil
> It will enter into business on behalf of its members - the entity 
> becomes the main contractor and accepts whatever liabilities that 
> comes 
> with that role
> The entity will act as supplier of 3rd party solutions  - for 
> example, 
> most solutions customers want needs hardware, software, infrastructure
> such as servers, storage, network equipment, non OSS software, 
> UPS, air 
> conditioning, site preparation materials, fire protection, 
> physical 
> security systems etc
> Most if not all of us small OSS companies don't have the financial 
> resources handle all these, so we end up as a small subcontractor 
> for 
> some big systems integrator who will then control the account and 
> make 
> more money. If our Trade Federation can do this part on its 
> members 
> behalf, we gain more and we wont be at the mercy of the big boys. 
> The 
> entity of course makes margins from all these products they sell.
> The problem is finding a legal entity we can register which allows 
> us 
> to do all this.
> Regards
> Tze Meng
> ---------------------------------------------------------
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n:Shah;Raja Iskandar
fn:Raja Iskandar Shah
org:RISC Niaga Enterprise;