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SHARE CAPITAL - Coggle Diagram
SHARE CAPITAL
Nature of Shares
Section 70 - A share or other interest of a member in a company is personal property and transferable in accordance with Section 105 of Companies Act 2016.
Shareholder does not own any of the assets of the company. The company as a separate legal entity owns the assets itself.
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bought, sold and mortgaged
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Represent a unit of ownership in the company and the amount paid on the share contributes to the company's capital.
Companies Act 2016 - According to Section 74 of Companies Act 2016, all shares issued before or upon the commencement of the new legislation shall have no par or nominal value.
Companies Act 1965 -The capital of a Malaysian company limited by shares has to be divided into shares of a fixed amount, usually RM1 per share.
Share
Definition under Section 2(1) - issued share capital of a corporation and includes stock except where a distinction between stock and shares is express or implied
Legal Definition - interest of a shareholder in the company measured by a sum of money
Purpose - of liability in the first place and of interest in the second
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Main Rights and Powers
Section 71 - A share in a company other than preference share, confers on the holder:
Right to attend, participate and speak
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Right to an equal share in dividends authorized by the board ( may be negated, altered or added to by the constitution or in accordance with the terms)