Company Formation & Classification

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What is the maximum liability of a member in a company limited by shares?

The amount unpaid on shares held by the member (correct)

The total value of the company's liabilities

The full value of the company's assets

An unlimited amount

What type of company has no share capital?

Company Limited by Guarantee (correct)

Unlimited Liability Company

Company Limited by Shares

Public Company

What is the main difference between a company limited by shares and a company limited by guarantee?

The extent of liability of members (correct)

The type of business they can conduct

The duration of their existence

The minimum number of members required

In a company limited by guarantee, what is the extent of a member's liability?

The amount they have agreed to contribute Signup and view all the answers

What is the characteristic of an unlimited liability company?

Members' liability is not limited in any way Signup and view all the answers

What was the issue in the case of Tan Tien Kok v Medical Specialist Centre (Jb) Sdn Bhd?

Whether a company limited by shares can impose a surcharge on its members Signup and view all the answers

What is a characteristic of a private company according to S.42(2)?

Prohibition of any invitation or offer to the public to deposit money with the company Signup and view all the answers

What is the main difference between a public and a private company?

Public companies have access to public funding Signup and view all the answers

What is the significance of the words 'Private' or 'Pte' in a company's certification of incorporation?

The company is a private company Signup and view all the answers

What is the purpose of the Securities Commission Act 1993 and the Securities Industry Act 1983?

To regulate public companies Signup and view all the answers

What is an exempt private company?

A private company that is exempt from certain regulatory requirements Signup and view all the answers

What is the requirement for a company to be considered a public company?

It must have access to public funding Signup and view all the answers

What is a prerequisite for a director before the company formation application is submitted?

Personally signing the Declaration by Person before Appointment as Director Signup and view all the answers

What is the minimum number of promoters required for a private company incorporation?

One Signup and view all the answers

What type of company requires at least two directors who ordinarily reside in Malaysia?

Public company Signup and view all the answers

What is the term for a company that has no members except its parent company or its nominee?

Wholly-owned subsidiary Signup and view all the answers

What is the first step in the company incorporation procedure?

Obtaining approval from the SSM Signup and view all the answers

What is the residence requirement for a director of a private company?

Having a principal place of residence in Malaysia Signup and view all the answers