NATURE, FORMATION AND TYPES OF COMPANIES

A limited company may either be the followings, EXCEPT;

• Company limited by shares

• Company limited by guarantee

• Unlimited company

• Company limited by both shares and guarantee.

A company that prohibits any invitation to the public to subscribe for any shares in or debentures of the company is…

• Public company

• Sole Proprietorship

• Private company

• Partnership

What is the company limited by shares?

• The company’s liability upon its winding up is limited.

• The liability of the winding up of the company is limited.

• All debts of a company upon its winding up will be paid by the directors.

• The liability of the members to contribute towards the assets of the company in a winding up is limited to the amount unpaid on his shares.

A company register as a private company under Companies Act 2016 must have the following characteristics EXCEPT;

• the number of members can be more than 50

• there exists a restriction on the right to transfer shares

• the company will have the word “Sendirian Berhad” or the abbreviation “Sdn Bhd” as part of its name

• the certificate of incorporation of the company would state that the company is a private company.

"the liability of its members is limited to such amount as the members undertake to contribute in the event of its being wound up".

This types of a company is known as ......

• unlimited company

• company limited by shares

• company limited by guarantee

"the liability of its members is limited to such amount as the members undertake to contribute in the event of its being wound up".

This type of company have ....

• a shares

• no shares

• a partnership agreement

• no members

Which of the following statements defined unlimited company as in section 10 Companies Act 2016? (Choose more than one answer)

• in a winding up, the members is liable to the debts of a company without limit

• it can be a public company or private company

• in a winding up, the members is not liable to the debts of a company.

• The liability of a members is specified in the agreement.

The doctrine of "separate legal personality" means ....

• a company and its members is considered as one entity.

• a company is separate and independent from the members

• a members, Board of Directors and shareholders are separate

Which of the following statements below, reflect the characteristics of a limited company?

• The company's liability for its debts on winding up is limited.

• The liability of the auditors on winding up of the company is limited

• All debts of the company of the company will be paid by the directors.

• The liability of the members of the company to contribute to the assets of the company on winding up is limited.

When does the existence of a company is recognized?

• When CCM issued a certificate of incorporation.

• When the company appoint a Board of Directors

• When CCM satisfies with all the incorporation documents