Thiswould meanthatapubliccompanylimitedby

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Unformatted text preview: strictions y – no corporate shareholder – not more than 20 shareholders y Advantages of exempt private – financial information private Public Companies Public Companies y y To protect the interests of the investing public who may invest money in its securities legislation such as the Capital Markets and Services Act 2007 (Act 671) (CMSA), have provisions that must be complied with by a public company before it can offer or invite the public to subscribe to its securities. Section 26(1) of the Act enables a public company with a share capital to be converted into a private company by passing a special resolution. This would mean that a public company limited by guarantee cannot be converted to a private company, as it has no share capital. Holding & subsidiary Holding & subsidiary purpose of distinction y consolidated group accounts y – s 169 y subsidiary definition – s 5(1)(a) y 3 alternate tests control composition of board control more than 50% of shareholders’ votes, or – hold more than 50% of issued shares – – x preference shareholding excluded Foreign Companies Foreign Companies y y y A ‘foreign company’ is defined by s 4(1) of the Act as: a company, corporation, society, association or other body incorporated outside Malaysia; or an unincorporated society, association or other body which under the law of its place of origin m...
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