classification of companies

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classification of companies by Mind Map: classification of companies

1. a company limited by shares

1.1. Section 4(1)- Liability of member limited in the memorandum to the amount,unpaid shares respectively held by them

1.2. Section18(1)(c)- Required to state in its memorandum the amount of its shares capital and its division into shares of a fixed amount,limited liability of members

2. company limited by guarantee

2.1. Section4(1)- A company formed on the principle of having the liability of its members limited by the memorandum to respective amount that the members undertake to contribute to the property of the company in the event of its being wound up

3. company limited by both share and guarantee

3.1. Section214(4)- a member of such a company is liable to pay the amount,if any unpaid on any shares held by him or her,in addition to meeting her or his guaranteed undertaking to contribute a specified amount in the event the co. is wound up

3.2. However,Section 14A was inserted by the Companies Act 1985 and such companies are no longer allowed to be formed

4. unlimited company

4.1. Section4(1)- a company formed on the principle of having no limit placed on the liability of its members.

5. private companany

5.1. Section4(1) :a company incorporated as such by virtue of S15 or its predecessors which have retained its private status

5.2. Section 26: allows a public company with a share capital to be incorporated as a private company

5.3. Limit to 50 members,joint holder of shares counted as one person and any employees who are members or past employees who continue to remain member are not counted

5.4. Prohibit any invitation or offer to public to subscribe for share or debenture of the company

5.5. Prohibit any invitation or offer to public to deposit money with the company for fixed periods or payable at call

6. public company

6.1. Section 4(1) of companies Act: a company other than private company

6.2. All companies listed on the Malaysia Stock Exchange are public company but not all public company are listed

6.3. Therefore if a company does not impose on itself the restrictions and prohibitions of Section 15,it must be a public company

6.4. Not limited to 50 members

7. holding company

7.1. Not directly defined under Section 5

7.2. Section 5(1)(a) of Companies Act- Deemed to be a subsidiary of a holding company if the holding company with respect to the subsidiary

7.3. a) Control the composition of the BOD of the subsidiary company

7.4. b) Control more than half of the voting power of the subsidiaries

7.5. c) Controls more than half of the issued share capital of the subsidiaries

8. related corporation

8.1. Is the holding company of another corporation

8.2. Is the subsidiary of another corporation

8.3. Is a subsidiary of the holding company of another corporation

9. foreign company

9.1. Section 4(1) of Companies Act

9.2. A company,corporation,society,association,or other body incorporated outside Malaysia