BDCM-B-Week25-BCL: Companies Act 2016 Part 1 Episode 1

Definition of corporation

If the company or limited liability partnership is form inside or outside Malaysia, it may consider as corporation with the exception of:-

1.      If it is government linked company

2.      Sole company

3.      Co-operative societies

4.      Trade union

Definition of subsidiary and holding company

The corporation is to be considered as subsidiary when 3 below statements are met:-

1.      Controls the board of directors

2.      Have more than half voting power

3.      Holds more than half issued share capital

Definition of ultimate holding company

It is ultimate holding company if:-

1.      It owns subsidiary

2.      It doesn’t own by any other corporate

Definition of wholly-owned subsidiary

A company is considered wholly-owned subsidiary of another company except:-

1.      There other corporate in the board

2.      Owned by another company

When corporations deemed to be related to each other

In the condition:-

1.      Holding company of another company

2.      Subsidiary of another company

3.      Subsidiary of the holding company of another company