Company
Companies are registered legal entities formed by several persons.
Companies can own property, draw contracts and employ people. All
companies in Malaysia are governed by the
Companies Act 1965
A company and the people who own it are regarded as different
entities regardless of percentage of shareholding in the company.
There are three types of limited companies:
A company limited by shares where the members’ personal
liabilities are limited to the par value of their shares.
A company limited by guarantee where the members'
liabilities will be restricted to the amount each agrees to
contribute to the assets of the company.
An unlimited company where there is no limit to the members’
liabilities.
A company limited by shares can be:
A private limited company (Sendirian Berhad) that cannot
sell shares to the general public
A public limited company (Berhad) that raises its capital by
selling shares and is run by a board of directors elected by the
shareholders.
Rights and Responsibilities of a Company
A company has separate rights and responsibilities
(independent of the members and shareholders.)
A company can take legal action and can have legal action
taken against it.
Shareholders are not liable for the company’s business
management.
Shareholders are protected against the loss of more than the
nominal value of their shareholding.
The company’s operation is governed by the Companies
Commission.
The company must pay various taxes.
Companies must publish financial reports checked by
authorised auditors.
Company.htm