There are many different companies which exist in Malaysia today. Some are sole proprietorships, some are partnerships, some are representative offices, and some are either public or private limited companies. In Malaysia, private limited companies are also known as Sendirian Berhad (Sdn Bhd) companies. Sdn Bhd companies form an important part of the business scene of Malaysia through the large amounts of revenue which they cumulatively generate as well as the many opportunities for employment which they provide.
Many shares exist in a Sdn Bhd company; these shares are, of course, owned by the shareholders of the Sdn Bhd company. There will sometimes be occasions when the most advantageous course of action to be taken is that of transferring such shares to another person. This article will therefore provide information on transfers of the shares of a Sdn Bhd company in Malaysia for the benefit of those seeking to do so.
However, before the transfers of such shares can be discussed, the definition and characteristics of a Sdn Bhd company must be mentioned so as to provide a clearer picture of the details of such share transfers.
Definition of a Sdn Bhd Company
In Malaysia, a Sdn Bhd company is a variant of a Berhad (Bhd) company. Berhad (Bhd) is a suffix which in Malaysia is placed after the name of every public limited company. Thus, every company with either Berhad or Bhd after its name is a Malaysian public limited company. Similarly, companies which have Sendirian Berhad or its abbreviation, Sdn Bhd, placed after their names, are private limited companies. Sdn Bhd companies in Malaysia may be of any size, but the majority of them tend to be small and medium-sized enterprises unlike Bhd companies, which are typically some of the largest companies which are in operation in Malaysia today.
Should you be interested in starting a Sdn Bhd company or any other company of any sort in Malaysia, we at Paul Hype Page & Co are always willing to be of assistance to you. We will help you incorporate your company according to the company laws that exist in Malaysia today. We will even contact any government authorities on your behalf if you require us to do so.
Why Shares Need to Be Transferred
There are certain instances in which the optimal course of action to be taken with regard to a Sdn Bhd company’s shares is that of transferring them. The shares of a Sdn Bhd company tend to be transferred for either of two primary reasons. The first of these reasons manifests itself when the company owner sells shares to the public, then proceeds to invest the money earned from selling the shares. The second of these reasons concerns the company’s future net value. At some point in the future, the company will have become far more profitable and gained much net worth. Its total value and therefore the value per share will increase tremendously. At this point, many a shareholder will choose to transfer the shares owned so as to earn a profit. The shares are sold according to the new price of the shares.
Shares can be transferred from a shareholder to any person; this person may either be a new or an existing shareholder. The transfer of shares introduces a new shareholder. Shares are either transferred in the form of a gift or sale. They may be transferred at any time after incorporation as long as the company has a sufficient amount of shares.