Unlimited
- the liability of the members or shareholders is not limited - that is, they are liable to contribute whatever sums are required to pay the outstanding debts (if any) of the company should it ever go into formal liquidation and its assets are insufficient to pay its debts and liabilities and the expenses of liquidation.
- The members or shareholders are liable for the shortfall.
- company limited by shares or by guarantee
- members or shareholders have no direct liability to the creditors of an unlimited company.
- Limited by shares - liability is limited by shares in the memorandum; member cannot be asked to pay more than the amount unpaid on his shares when the company is wound up; If he has paid in full for his shares, he cannot be asked for further contribution.
- Limited by guarantee - member needs only to contribute the amount he agreed to guarantee.
PUBLIC & PRIVATE CO.
Public
- has permission to offer its registered securities (stocks, bonds, etc) for sale to the general public, typically through a stock exchange, or occasionally a company whose stock is traded over the counter (OTC) via market makers who use non-exchange quotation services.
- raise capital by selling shares
- Run by a board of directors elected by shareholders.
- show status using the abbreviation "Bhd." or the word "Berhad" after their company name.
Private
- Business company owned either by non-governmental organizations or by a relatively small number of holders who do not trade the stock publicly on the stock market. Less ambiguous terms for a privately held company are unquoted company and unlisted company.
- The name of private limited company ends with the word "Sendirian Berhad" or abbreviation "Sdn. Bhd".
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