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Classification of Company - Coggle Diagram
Classification of Company
Based on the liability of member
Company limited by shares
Section 10(2) "The liability of its members is limited to the amount, if any, unpaid on shares held by members".
Devided by 2
Private company
Public company
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 by shares and guarantee
Section 12 "No company shall be formed as, or become, a company limited by guarantee with a share capital".
Unlimited Company
Section 10(4) "A company formed on the principle that no limit is placed on the liability of its members".
Devided by 2
Private company
Public company
Based on the place of incorporation
Local Company
Foreign Company
Carrying business in Malaysia includes establishing or using a share transfer or share registration office or administering, managing or otherwise dealing with property situated in Malaysia as an agent, legal personal representative or trustee, whether by servants of agents or otherwise.
Based on public status
Public company
Section 2 "Public company means a company other than a private company".
Raises capital by seeking funds from the public
& must hold AGM
Private company
Section 42(1) "A company limited by shares having not more than fifty shareholders may be registered as private company
Given an option to hold an AGM
Exempt Private
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 twenty members none of whom is corporation".
Exempted from
Prohibitions related to loans to persons connected with director under S.225(1)
Prohibitions related to loans to director
Based on the relationship with other companies
Holding company
Section 4(1) A company will be called as holding company (subsidiary of other company) if :
Control 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
The subsidiary company is a subsidiary of any corporation which is itself a subsidiary of the holding company
Subsidiary
Section 6 "A corporation shall be deemed to be a wholly-owned subsidiary of another corporation of it has no members other than :
Other corporation of its nominee
The wholly-owned subsidiary of that other corporation or its nominee