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Classification of company in Malaysia - Coggle Diagram
Classification of company in Malaysia
Exempt private company
Acc. to Sec 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 persons connected with directors under Sec.225(1)
The name should be followed with 'Sendirian Berhad" or "Sdn. Bhd"
Public Company
Acc. to Sec. 2, public company means a company other than a private company
The company that are listed in the Bursa Malaysia Securities Berhad must be public companies with share capital.
A public company raises capital by seeking funds from the public.
Has more disclosures requirements for directors and shareholders.
Company limited by guarantee
Acc to Sec 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.
Do not have a share capital
Not required to contribute to the assets of the company as long as the company is functioning.
Formed for non-profit-making such as promoting charity
"Berhad" and "Bhd" is the name for public company.
An unlimited company
Acc to Sec. 10(4), a company formed on the principal that no limit is placed on the liability of its members.
According to Sec. 11(3), an unlimited company shall either be a private company or a public company
"Sendirian" and "Sdn" will appear at end of the company's name for an unlimited compay.
Company limited by shares
Can be private or public company
For example, "Sendirian Berhad" or "Sdn. Bhd" for private companies and "Berhad" or Bhd for public companies.
Acc to Sec. 10, the liability of its members is limited to the amount, if any, unpaid on shares held by the members
Private company
Acc. to Sec. 42(1), a company limited by shares having not more than 50 shareholders may be registered as a private company
Acc. to Sec. 43(1), private companies are prohibited to offer shares or debentures or invite to deposit money.
Use more written resolutions for members' meeting and less disclosures requirement.
Holding and subsidiary company
Acc. to Sec, 4(1), a company is a subsidiary of another company (called its holding company (HO)) if
HO controls the composition of the subsidiary's board
In a position to control more than one-half o the voting power of the subsidiary
Hold more than one-half of the issues share capital of the subsidiary
Acc. to Sec. 6, a corporation shall be deemed to be a wholly-owned subsidiary of another corporation of it has no members.
Holding company and its subsidiary is related body corporate.
Company limited both by shares and guarantee
Acc. Sec. 12, no company shall be formed as or become, a company limited by guarantee with a share capital.