Malaysia Limited Companies

Update Date:2015-9-22 14:32:47 Source:Tannet (Malaysia) Sdn Bhd Views:835

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Malaysia Limited Company can be categorized into two types:

i. Malaysia Private Limited Company 

ii. Malaysia Public Limited Company

Malaysia Private Limited Company :

Malaysia Sendirian Berhad (SDN BHD) is a private limited company. It prohibits any invitation for the public to subscribe to any of its shares, deposit money with the company for investment or subscription. The minimum number of members in a private limited company is ONE (1) and the maximum is FIFTY (50) ONLY.

Malaysia Public Limited Company :

Malaysia Berhad (BHD) is a public limited company. The shares of Malaysia Public Limited Company can be offered to the public for fixed periods and any other forms of subscription. The minimum number of members’ (shareholders) is ONE (1) and it can have unlimited amount of members. Although not necessarily so, public limited companies are usually listed companies. A public limited company (Berhad) is also governed by the Securities Commission of Malaysia.

There are two (2) types of limited companies in Malaysia:

- Limited by Shares

- Limited by Guarantee

Companies Limited by Shares

Liability of members’ contribution to this company is limited to the amount specified on their unpaid shares. Should the company becomes insolvent or goes into liquidation; members are not obligated to pay off the company’s debts if and unless any one of the members gives a personal guarantee.

Also, members’ personal assets, employment and personal income are not liable to any of the company’s debts. This type of business entity is the most common one in Malaysia.

Companies Limited by Guarantee

In a limited company’s Memorandum and Articles of Association, members’ liability is limited to the amount they ‘guarantee’ or undertake during winding up – In which the amount is specified in the Memorandum, agreed and signed by all members.

In many cases, companies limited by guarantee are often registered by non-profit organizations, public societies and clubs.

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