scenerio of company
Scenario of company limited by shares
Joseph forms a company limited by shares which he representing a sole shareholder and sole director of the limited company while Germany has been employed as the secretary of the limited company. Joseph agrees to subscribe 2 shares in the company and he had made the full payment.
During the business operations, the limited company earns profit initially. After few years, declines in demand of their products caused the company started to make severe losses and goes into liquidation. Thus, the limited company would not be able to pay the suppliers.
In these circumstances, Joseph is not under any obligation to pay the debts of the limited company as he has contributed the actual amount and no direct dealings with the supplier. However, the limited company is the person who is responsible to pay off their own debts because they are the person who is having directly contractual relationship with the suppliers.
But in different situation, if Joseph only paid half of the shares of he bought, Joseph is still required to pay the remaining amount of the shares when liquidation happened. If Joseph refused to do so, he can be sued through limited company by the liquidator whom the person is now having the control over the limited company which stated under Section 16(5) of Companies Act 1965.
Scenario of company limited by guarantee National Kidney Foundation is a charity organization formed for the prevention and treatment of kidney disease. The amount guaranteed by the members were RM50,000. The members are not required to contribute to the assets when the company is in going concern. But if the company wound up, the members must pay the RM50,000 that they had guaranteed.
Scenario of unlimited liability of company Austin, Mark and Kevin wanted to buy a property. Due to the insufficient of fund, they decided to joint capital and form an unlimited company in order to share the title of the property fairly. They chose to set
Joseph forms a company limited by shares which he representing a sole shareholder and sole director of the limited company while Germany has been employed as the secretary of the limited company. Joseph agrees to subscribe 2 shares in the company and he had made the full payment.
During the business operations, the limited company earns profit initially. After few years, declines in demand of their products caused the company started to make severe losses and goes into liquidation. Thus, the limited company would not be able to pay the suppliers.
In these circumstances, Joseph is not under any obligation to pay the debts of the limited company as he has contributed the actual amount and no direct dealings with the supplier. However, the limited company is the person who is responsible to pay off their own debts because they are the person who is having directly contractual relationship with the suppliers.
But in different situation, if Joseph only paid half of the shares of he bought, Joseph is still required to pay the remaining amount of the shares when liquidation happened. If Joseph refused to do so, he can be sued through limited company by the liquidator whom the person is now having the control over the limited company which stated under Section 16(5) of Companies Act 1965.
Scenario of company limited by guarantee National Kidney Foundation is a charity organization formed for the prevention and treatment of kidney disease. The amount guaranteed by the members were RM50,000. The members are not required to contribute to the assets when the company is in going concern. But if the company wound up, the members must pay the RM50,000 that they had guaranteed.
Scenario of unlimited liability of company Austin, Mark and Kevin wanted to buy a property. Due to the insufficient of fund, they decided to joint capital and form an unlimited company in order to share the title of the property fairly. They chose to set