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Business Entity and Classification of Company - Coggle Diagram
Business Entity and Classification of Company
Types
Company
Has its own personality and is separate from ite
members and officers
Perpetual existence
Can sue and be sued in its own
name
Minimum 1 person for private company; Minimum 2 person for public company
Maximum 50 persons
Limited Partnership
Partnership
profits shall be
shared
Minimum 2 persons
Maximum 20 persons
Section 3(1): Partnership is the relation which subsists between persons carrying
on a business in a common with a view of profit
Unincorporated
Must be registered under the Registration of Business Act 1956
Limited Liability Partnership
Legal status of a body corporate and unlimited
capacity
LLP has perpetual successions
Combines
the characteristics of a company and a
conventional partnership.
Sole Proprietorship
Unlimited liability
Use own to resources
Unincorporated
Less regulated
The simplest structure of business
Legal
requirements
Certificate of Registration
Personal details
Registered with Registrar under Registration of Business Act 1956 (Revised 1978) within 30 days
Types of Company
Exempt Private Company
Section 2: a private company in the shares of which no beneficial interest is held directly or indirectly by any corporation and which has not more than 20 members none of whom is a corporation
Exempted from prohibitions related to loans to director
Private company
Private Company
Limited by Share
maximum 50 shareholders
restrict the transfer of its shares
less disclosures requirements
option to hold an AGM
Holding and Subsidiary Companies
Section 4(1): The holding company:
-controls the composition of the subsidiary’s
board
-in a position to control more than one-half of
the voting power of the subsidiary
-holds more than one-half of the issues share
capital of the subsidiary
Section 6:
(a) That other corporation of its nominee; ir
(b) A wholly-owned subsidiary of that other corporation or its nominee.
Public Company
Raises capital by seeking funds from the public
Public company must hold AGM
has more disclosures requirements for directors and shareholders
Limited by share
Foreign Company
registered under CA 2016
Malaysia as an agent
must submit necessary documents to the ROC along with a prescribed fee.
Limited and Unlimited Companies
Company limited by shares
Liability limited
Can be a private or a public company
"Sendirain Berhad" or "Sdn.Bhd." for private companies
"Berhad" or "Bhd" for public companies
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
Unlimited of liability
a private company or a public
company
Company limited by guarantee
not required to contribute to the assets of the company as long as
the company is functioning
does not have a share capital
required to pay up the amount guaranteed by them when is being wound up
non-profit-making objectives