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Classification of Companies - Coggle Diagram
Classification of Companies
Company limited by shares
S10(2)- the liability of its members is limited to the amount, if
any, unpaid on shares held by the members
the liability of their members is limited by the amount remaining unpaid on their shares, are known as companies limited by shares.
A company limited by shares can be a private or a public company.
Company limited by guarantee
S10(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
does not have a share capital
Its members are not required to contribute to the assets of the company as long as the company is functioning.
formed for non-profit-making objectives
An unlimited company
S10(4)-a company formed on the principle that no limit is placed on the liability of its members
S11(3)-: an unlimited company shall either be a private company or a public company.
S435(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
S2-public company means a company other than a private company
All the companies that are listed in the Bursa Malaysia Securities Berhad must be public companies with share capital.
raises capital by seeking funds from the public.
CA 2016 has many provisions that protect the public’s interest
must hold AGM
Private company
S42(1)-A company limited by shares having not more than fifty shareholders may be registered as a private company.
S42(2)-A private company shall restrict the transfer of its shares.
S43(1)-Private companies are prohibited to offer shares or
debentures or invite to deposit money
given an option to hold an AGM subject to its
constitution.
may use more written resolutions for members’ meeting
and less disclosures requirements.
Holding and subsidiary companies
S4(1)-a company is a subsidiary of another company
the holding company controls the composition of the subsidiary’s
board
The holding company is in a position to control more than one-half of the voting power of the subsidiary
The holding company holds more than one-half of the issues share capital of the subsidiary
The subsidiary company is a subsidiary of any corporation which is itself a subsidiary of the holding company
S6-a corporation shall be deemed to be a wholly-owned subsidiary of another corporation of it has no members other than:
That other corporation of its nominee
A wholly-owned subsidiary of that other corporation or its nominee.
Holding company and its subsidiary is related body corporate.