Corporate Law of Malaysia : Share Capital & Capital Maintenance Rule for Businesses Operating in Malaysia

2021 ◽  
Author(s):  
Chee Fei Chang ◽  
May Yee Ng
Keyword(s):  
Corporate Law ◽  
Capital Maintenance ◽  
Share Capital

9. Share Capital

2020 ◽  
pp. 163-178
Author(s):  
Imogen Moore
Keyword(s):  
Financial Assistance ◽  
Capital Maintenance ◽  
Private Companies ◽  
Public And Private ◽  
Share Capital ◽  
Statutory Law ◽  
Questions And Answers ◽  
The Law ◽  
A Company

The Concentrate Questions and Answers series offers the best preparation for tackling exam questions and coursework. Each book includes typical questions, suggested answers with commentary, illustrative diagrams, guidance on how to develop your answer, suggestions for further reading, and advice on exams and coursework. This chapter examines the law on share capital for public and private companies. The doctrine of capital maintenance ensures that the company has raised the capital it claims to have raised; and that the capital is not subsequently returned, directly or indirectly, to the shareholders. There is a great deal of (mainly statutory) law surrounding this doctrine This chapter considers the capital maintenance doctrine itself and many related topics, including: the issue of shares for non-cash consideration, issue of shares at a discount, reduction of capital, purchase of a company’s own shares, redeemable shares, payment of dividends, and financial assistance by a company for the purchase of its own shares.

9. Share Capital

2018 ◽  
Author(s):  
Imogen Moore
Keyword(s):  
Financial Assistance ◽  
Capital Maintenance ◽  
Share Capital ◽  
Statutory Law ◽  
Questions And Answers ◽  
The Law ◽  
A Company

The Concentrate Questions and Answers series offers the best preparation for tackling exam questions and coursework. Each book includes typical questions, suggested answers with commentary, illustrative diagrams, guidance on how to develop your answer, suggestions for further reading, and advice on exams and coursework. This chapter examines the law on share capital. The doctrine of capital maintenance ensures that the company has raised the capital it claims to have raised; and that the capital is not subsequently returned, directly or indirectly, to the shareholders. There is a great deal of (mainly statutory) law surrounding this doctrine This chapter considers the capital maintenance doctrine itself and many related topics, including: the issue of shares for non-cash consideration; issue of shares at a discount; reduction of capital; purchase of a company’s own shares; redeemable shares; payment of dividends; and financial assistance by a company for the purchase of its own shares.

9. Share Capital

2016 ◽  
Author(s):  
Imogen Moore
Keyword(s):  
Financial Assistance ◽  
Capital Maintenance ◽  
Share Capital ◽  
Statutory Law ◽  
Questions And Answers ◽  
The Law ◽  
A Company

The Concentrate Questions and Answers series offers the best preparation for tackling exam questions and coursework. Each book includes typical questions, suggested answers with commentary, illustrative diagrams, guidance on how to develop your answer, suggestions for further reading, and advice on exams and coursework. This chapter examines the law on share capital. The doctrine of capital maintenance ensures that the company has raised the capital it claims to have raised; and that the capital is not subsequently returned, directly or indirectly, to the shareholders. There is a great deal of (mainly statutory) law surrounding this doctrine This chapter considers the capital maintenance doctrine itself and many related topics, including the issue of shares for non-cash consideration; issue of shares at a discount; reduction of capital; purchase of a company’s own shares; redeemable shares; payment of dividends; and financial assistance by a company for the purchase of its own shares.

8. Capital and capital maintenance

2016 ◽  
Author(s):  
Lee Roach
Keyword(s):  
Capital Maintenance ◽  
Essential Information ◽  
Share Capital ◽  
Debt Capital ◽  
The Law

EachConcentraterevision guide is packed with essential information, key cases, revision tips, exam Q&As, and more.Concentratesshow you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter discusses the two principal types of capital that companies acquire: share capital (capital obtained by selling shares) and debt capital (capital borrowed from others). Having obtained share capital through the selling of shares, the law requires that the company ‘maintain’ that capital by not distributing it in unauthorized ways.

7. Capital and capital maintenance

2020 ◽  
pp. 127-150
Author(s):  
Lee Roach
Keyword(s):  
Capital Maintenance ◽  
Essential Information ◽  
Share Capital ◽  
Debt Capital ◽  
The Law

Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter discusses the two principal types of capital that companies acquire: share capital (capital obtained by selling shares) and debt capital (capital borrowed from others). Having obtained share capital through the selling of shares, the law requires that the company ‘maintain’ that capital by not distributing it in unauthorized ways, notably by prohibiting companies from returning capital to the shareholders prior to liquidation.

Introductory Editorial: Renovating the German Private Limited Company - Special Issue on the Reform of the GmbH

2008 ◽  
Vol 9 (9) ◽  
pp. 1063-1068 ◽  
Author(s):  
Gregor Bachmann
Keyword(s):  
Corporate Law ◽  
Special Issue ◽  
Share Capital ◽  
Corporate Form ◽  
Limited Company ◽  
A Share

On 28 June 2008, the German Bundestag (Federal Parliament) passed a bill on the reform of German corporate law. Known as the Gesetz zur Modernisierung des GmbH-Rechts und zur Bekämpfung von Missbräuchen (MoMiG – Law for the Modernization of the GmbH and to Stop its Misuse) the bill is a milestone, the single most important reform of the most commonly used German corporate form. The reform will bring about major changes. Among other things the reform will make it possible to establish a GmbH with a share capital of nothing more than € 1 EURO (previously, € 25,000 had been required) and to establish a GmbH that has no active business in Germany but solely operates abroad. Although the bill still has to be approved by the Bundesrat (Federal Council of the States), which will probably vote on this matter on 19 September, experts have little doubt that the reform easily will pass this last hurdle and enter into force as soon as 1 November.

17. The maintenance of capital

Company Law ◽  
2019 ◽  
pp. 462-497
Author(s):  
Lee Roach
Keyword(s):  
Financial Assistance ◽  
The Other ◽  
Capital Maintenance ◽  
Private Company ◽  
Public Companies ◽  
Share Capital ◽  
Other Hand ◽  
Limited Company ◽  
Stage Process ◽  
A Company

This chapter addresses what is known as the capital maintenance doctrine — a series of rules designed to protect the company's creditors by ensuring that capital is maintained and not returned to the company's members. Any limited company can reduce its share capital by passing a special resolution followed by court confirmation. A private company can reduce its share capital by passing a special resolution supported by a solvency statement. On the other hand, public companies are generally prohibited from providing financial assistance to others to acquire their shares. Meanwhile, a company can generally only pay a dividend out of distributable profits. The typical three-stage process for paying dividends is the directors recommend an amount to be distributed by way of dividend; the company declares the dividend by passing an ordinary resolution; and the dividend is paid out.

7. Capital and capital maintenance

2018 ◽  
Author(s):  
Lee Roach
Keyword(s):  
Capital Maintenance ◽  
Essential Information ◽  
Share Capital ◽  
Debt Capital ◽  
The Law

Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter discusses the two principal types of capital that companies acquire: share capital (capital obtained by selling shares) and debt capital (capital borrowed from others). Having obtained share capital through the selling of shares, the law requires that the company ‘maintain’ that capital by not distributing it in unauthorized ways, notably by prohibiting companies from returning capital to the shareholders prior to liquidation.

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