Membership Method: Automatic Company Formation
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Questions and Answers

Individuals who initiate the process are called 'subscribers'. They fill out an application to incorporate the company and list themselves as the proposed ______

members

Once the company is officially registered with the Companies Commission of Malaysia (CCM), these subscribers automatically become ______ of the company

members

After the company has been officially registered and is operational, it can issue new shares. These shares represent a portion of the company. Individuals who wish to become ______ of the company can do so by applying for these new shares or subscribing to them

members

This method involves acquiring shares that have already been issued by the company. One is through a transfer, where a current member decides to sell their shares to another individual. The other is through transmission, where the shares of a deceased member are passed on to their ______

<p>heirs</p> Signup and view all the answers

What is the process through which individuals automatically become members of a company?

<p>Initiating the company formation process</p> Signup and view all the answers

How can individuals increase a company's membership and raise capital for its operations?

<p>By applying for new shares</p> Signup and view all the answers

In what scenario can a deceased member's shares be passed on to their heirs?

<p>Through acquisition of already issued shares</p> Signup and view all the answers

When does the process of acquiring shares to become a member of the company take place?

<p>After the company is officially registered</p> Signup and view all the answers

What is the term used for individuals who initiate the process of incorporating a company?

<p>Incorporators</p> Signup and view all the answers

Which method allows individuals to become members of a company by acquiring new shares?

<p>Apply/Subscribe method</p> Signup and view all the answers

What is the term used for the process of acquiring shares that have already been issued by the company?

<p>Transmission method</p> Signup and view all the answers

What happens to the individuals who fill out an application to incorporate the company and list themselves as proposed members once the company is officially registered?

<p>They become shareholders</p> Signup and view all the answers

When does the automatic membership method apply in the process of becoming a member of a company?

<p>Once the company is officially registered</p> Signup and view all the answers

What do individuals acquire to become members of a company through the Apply/Subscribe method?

<p>New shares or subscriptions</p> Signup and view all the answers

How can an individual become a member of a company through the acquisition of already issued shares method?

<p>By acquiring shares through transfer or transmission</p> Signup and view all the answers

What is one way in which shares are acquired in the acquisition of already issued shares method?

<p>By transferring or transmitting ownership from current members</p> Signup and view all the answers

What type of individuals automatically become members of a company without needing to take additional steps or actions?

<p>Subscribers during incorporation</p> Signup and view all the answers

What happens to individuals who acquire new shares or subscribe to them after a company has been officially registered and is operational?

<p>They become shareholders</p> Signup and view all the answers

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