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Business entity and classification of company - Coggle Diagram
Business entity and classification of company
Sole Proprietorship
Formed,managed, owned by one individual with no distinction between the business and the owner
Businesses are to be registered with the Registrar under the Registration of Business Act 1956 (Revised 1978) within 30 days of its commencement
Limited Liability Partnership (LLP)
an alternative business vehicle regulated under the Limited Liability Partnerships Act 2012 which combines the characteristics of a company and a conventional partnership.
LLP has the legal status of a body corporate and unlimited
capacity - capable of suing and being sued in its own name
Partnerships
A business arrangement between two or more persons to carry out similar nature of business with the agreement tt profits shall be shared among them.
Minimum number of persons is 2 persons and maximum number is 20 according to s14 (3) of the Companies Act 1965 (Revised 1973)
Company
Section 2 of the Act defines company as a company incorporated under the Companies Act 2016 or under any corresponding previous law
It has its own personality and is separate from ite
members and officers
Company limited by shares
Section 10(2): the liability of its members is limited to the amount, if any, unpaid shares held by the members
Company Limited by Guarantee
Section 10(3): the liability of its members is limited to such amount as the members undertake to contribute in the event of it being wound up
Company limited both by shares and guarantee
Section 12: no company shall be formed as, or become, a
company limited by guarantee with a share capital
An Unlimited company
Section 10(4) : a company formed on the principle that no limit is placed on the liability of its members
Public Company
Section 2 public company means a company other than a private company
A public company raises capital by seeking funds from the public
Private Company
Section 42(1): A company limited by shares having not more than fifty shareholders may be registered as a private company
Section 42(2) : A private company shall restrict the transfer of its shares.
Holding and subsidiary comapnies
Section 4(1): a company is a subsidiary of another company (called its holding company)
Section 6: a corporation shall be deemed to be a wholly-owned subsidiary of
another corporation of it has no members
Foreign Companies
A company registered under CA 2016 in Malaysia, but having its incorporated status outside Malaysia
Foreign companies must comply with Sections 561 – 579 of CA 2016