Company Limited by Shares

Accounting for Companies Limited by Shares

MS: Syarikat Berhad Menurut Syer · EN: Company Limited by Shares · ZH: 股份有限公司

Meaning

A Company Limited by Shares is a separate legal entity whose capital is divided into small units called shares. The liability of each shareholder is limited to the amount unpaid on the shares they hold. Such a company must be registered under the Companies Act and its name ends with Berhad (Bhd) or Sendirian Berhad (Sdn Bhd).

Example

For example, Maju Jaya Berhad is formed with capital divided into 100,000 shares of RM1 each. If Mr Amir holds 5,000 shares and the company is wound up, his personal loss is limited to his share investment, not his private assets.

Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5

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