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Classification of Company - Coggle Diagram
Classification of Company
Limited and Unlimited Companies
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.
Section 25(1)(a) of CA 2016
: company’s name shall have the word “Berhad” or “Bhd.”
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.
Limited by Shares
Section 10(2):
the liability of its members is limited to the amount, if any, unpaid on shares held by the members.
Companies must have the words “Sendirian Berhad” or “Sdn. Bhd.” for private companies, and “Berhad” or “Bhd” for public companies.
Unlimited Comnpany
Section 10(4) :
a company formed on the principle that no limit is placed on the liability of its members.
Section 11(3):
an unlimited company shall either be a private company or a public company.
Section 435(3):
any director, whether past or present, whose liability is unlimited shall be liable to make further contribution as if he were a member of an unlimited company in addition to his liability, if any, to contribute as an ordinary member.
Public Company
Section 2:
“public company means a company other than a private company”.
Must hold AGM.
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
Section 43 (1):
Private companies are prohibited to offer shares or debentures or invite to deposit money.
Foreign Company
Must comply with Sections 561 – 579 of CA 2016.
The foreign company’s “carrying on business” in Malaysia includes establishing or using a share transfer or share registration office or administering, managing
Exempt Private Company
Exempted from prohibitions related to loans to persons
connected with directors under s.225(1).
Exempted from prohibitions related to loans to director.
Holdings and Subsidiary Companies
Holds more than one-half of the issues share
capital of the subsidiary
Holding company and its subsidiary is related body corporate
Control more than one-half of
the voting power of the subsidiary
Controls the composition of the subsidiary’s
board