Shareholders of Malaysian Companies

Updated on Monday 28th November 2016

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Investors who open a company in Malaysia are referred to as shareholders. The shareholders of Malaysian companies have a wide set of rights and obligations, which are prescribed in the company’s articles of association. The document represents the statutory act for the company and the rights and obligations the shareholders have are determined based upon the legal entity under which the respective business will function. Our team of company formation representatives in Malaysia can provide more information on the specific attributions of the local shareholders
 

Legal rights related to the shareholders in Malaysia  


The rights and obligations provided for the shareholders of a Malaysian company are prescribed following the rules and regulations set up by the Organisation for Economic Cooperation and Development (OECD)

The shareholders of a company are required to debate and propose policies that will be imposed by the company’s board in such a way that the business will be run in an effective manner. 

Thus, they must provide their vision related to the decision making process, as well as to vote in the company’s general meetings

The shareholders must be consulted on the following matters, as prescribed in the Companies Act 1965

•    the issuance of shares;
•    establishment of new amendments for the company’s statutory documents;
•    setting up property transactions.

Persons who are interested in company formation in Malaysia should know that the applicable legislation imposes rights and obligations for the shareholders based on the legal entity representing the business. Our team of company formation agents in Malaysia may offer more details related to this subject. 
 

Rights of shareholders in Malaysia 


The shareholders in a Malaysian company have the following legal rights in respect to the general meeting: 

•    attend the general meeting;
•    establish a general meeting;
•    decide subjects for the general meeting’s agenda. 

In a company limited by shares, the shareholders are responsible for the company’s debts only in respect to the level of shares they own in the business, which is why this type of legal entity is the most common in Malaysia

Businessmen interested in finding out more details on the shareholders of Malaysian companies are invited to contact our team of company formation consultants in Malaysia

Comments

Erik

November 28, 2016

I believe that all shareholders should draft the shareholders' agreement, so that they will avoid a large set of problems which may appear between the minority and majority shareholders.



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