1eh 'oo Llng All rlghts reserved

!"#$% '( )'*#+,-$%

(''cz Q, L' Q6)
./01-2 '3 .3-4+5$
./01-2 )'*#+,"
6 7$25-', 8 )9:;< u ubllc co ls defned us uny co. other
thun u rlvute co. 1hls therefore meuns thut u ubllc co
need not huve u shure cultul, ls free to lnvlte the ubllc
to subscrlbe for lts shures or debentures und need not
restrlct the rlght of lts member to trunsfer lts shures.
.3-4+5$ )'*#+,"
6 7$25-', 8 )9:;< u rlvute co. refers to uny co. whlch:
=-> Lxlsted us u rlvute co. rlor to the commencement of
the CA'6, or
=-->Eus been lncororuted us u rlvute co. %?@<.
=--->Eus been converted lnto u rlvute co. %?A;?
6 7$25-', @< )9:;< u rlvute co. ls one whlch hus shure
cultul und lts MA or AA:
@? restrlcts the rlght to trunsfer lts shures,
A?llmlts to not more thun c the number of lts members ,
B? rohlblts uny lnvltutlon to the ubllc to subscrlbe for
uny shures ln or debentures of the co, und
8?rohlblts uny lnvltutlon to the ubllc to deoslt money
wlth the co. for fxed erlods or uyuble ut cull,
whether beurlng or not beurlng lnterest.
C-*-5$D 0"
7E+3$% '3 F/+3+,5$$
)'*#+," C-*-5$D 0" 7E+3$%
6 7$25-', 8 )9:;< u co. formed on the rlnclle of huvlng
the llublllty of lts members llmlted by the memorundum
to the umount (lf uny) unuld on the shures resectlvely
held by them.

6 1hus, ln u co llmlted by shures, euch member wlll huve no
further llublllty lf he hus fully uld for hls shures.
)'*#+," C-*-5$D 0" F/+3+,5$$
6 7$25-', 8 )9:;< 6 u co. formed on the rlnclle of huvlng
the llublllty of lts members llmlted by the memorundum
to such umount us the members muy resectlvely
undertuke to contrlbute to the ussets of the co. ln the
event of lt belng wound u.

6 1hus, lf ln u co. llmlted by guuruntee, the members would
only huve to uy u on the umount guurunteed by them,
lf the co. goes lnto llquldutlon.

6 7$25-', @89 )9:;< no co. llmlted by guuruntee cun be
formed wlth shure cultul. 1Els tye of co.s generully
uly to nontrudlng co.s whlch ure not roft motlvuted
whlch ulm to kee lncome und exendlture ln bulunce but
ulso huve the members guuruntee us u form of reserve
cultul lf lt becomes lnsolvent.
z 1eh 'oo Llng All rlghts reserved
!"#$% '( )'*#+,-$%
(''cz Q, L' Q6)
7/0%-D-+3" +,D G'1D-,H
6 7$25-', < )9:;< u co. ls deemed to be the subsldlury of unother co. lf:
=+> 1hut other comuny:
6 Controls the comosltlon of the 8CL of the frst mentloned cororutlon,
6 Controls more thun hulf of the votlng ower of the frst mentloned cororutlon,
6 Eolds more thun hulf of the lssued shure cultul of the frst mentloned cororutlon,
(excludlng uny urt thereof whlch conslsts of reference shures) or
=0> 1he frst mentloned cororutlon ls u subsldlury of uny cororutlon whlch ls thut other cororutlon's subsldlury.
1hus for exumle lf A Sdn 8hd, ls the subsldlury of 8 Sdn 8hd, whlch ltself ls the subsldlury of C Sdn 8hd, then A
Sdn 8hd wlll be consldered the subsldlury of C Sdn 8hd.
6 7$25-', <9 )9:;<
An ultlmute holdlng co. hus subsldlurles und ls not ltself u subsldlury of some other cororutlon.
6 7$25-', <I )9:;<
A wholly owned subsldlury ls u subsldlury ln whlch ull the shures ure owned by the holdlng co.
J$1+5$D )'*#+,"
7$25-', ; )9:;< u co. ls reluted to unother co. lf lt ls ln u holdlng
subsldlury relutlonshl or lf lt ls u subsldlury of u common holdlng co.
KL$*#5 .3-4+5$ )'*#+,"
7$25-', 8 )9:;< un exemt rlvute co. ls u rlvute co. ln whlch no benefclul lnterest ls held dlrectly or lndlrectly by uny
cororutlon und whlch hus not more thun zc members non of whom ls u cororutlon.
1he exemt rlvute co. enjoys the followlng udvuntuges over other rlvute co.s:
=-> lt ls exemted from the need to fle wlth the RCC u bulunce sheet und roft und loss ujc.
K-HE5 72E$D/1$M )9:;< und the condltlons thereln.
=-->lt ls exemted from the rovlslons of 7$25-', @BB )9:;< whlch generully rohlblts u co. from glvlng louns to lts dlrectors.
=--->lt ls ulso exemted from the rovlslons of 7$25-', @BB9 )9:;< whlch generully rohlblts u co. from glvlng louns to ersons
connected wlth u dlrector.
1eh 'oo Llng All rlghts reserved
N-O$3$,2$% I$5P$$, ./01-2 +,D .3-4+5$ )'*#+,-$%
./01-2 )'*#+," .3-4+5$ )'*#+,"
Q$*0$3%
R+*$
J+-%-,H )+#-5+1
N-3$25'3% 9##'-,5*$,5
C'+,% 5' N-3$25'3%
75+35 '( I/%-,$%%
C'DH*$,5 '( N'2/*$,5%
N-3$25'3% J$5-3$*$,5
.3'%#$25/%$%
75+5/5'3" Q$$5-,H +,D J$#'35
I',/% '3 J-HE5% S%%/$
N-3$25'3% J$*'4+1
At leust z
wlth NC mux
At leust z
mux c
Lnds wlth IED Lnds wlth 7D, IED
Muy rulse cultul by udvertlslng lts
securltles (shures und debentures) us
uvulluble for ubllc subscrltlon
Prohlblted from oerlng lts
securltles to the ubllc
Llrectors muy be uolnted or
reuolnted by seurute resolutlon
Llrectors muy be uolnted or
reuolnted by one resolutlon
Strlcter rules Strlct rules
Must obtuln Certlfcute for
Commencement of 8uslness from
RCC before commenclng trudlng und
exerclslng borrowlng owers
Cun commence trudlng und
exerclse borrowlng owers from
dute of lncororutlon
Certuln documents must be lodged
wlth the RCC to obtuln the Certlfcute
NC1 necessury
Llrectors must retlre ut uge of ,c NC1 necessury
Must lssue rosectuses or
stutement ln lleu of rosectus
before they cun lssue shures
NC1 necessury
Must hold stututory meetlngs und
lodge u stututory reort wlth the RCC
NC1 necessury
Prlor urovul requlred from
Securltles Commlsslon
NC1 necessury
7$25-', @AT )9:;< u dlrector must be
removed by ordlnury resolutlon
Removul of dlrector must be by
method rovlde ln the MA und AA
1eh 'oo Llng All rlghts reserved
KL$*#5 .3-4+5$ )'*#+," .3-4+5$ )'*#+,"
R'? '( Q$*0$3%
Q$*0$3%E-#
922'/,5%
C'+,% 5' N-3$25'3%
At leust z
mux zc
At leust z
mux c
Cnly lndlvlduuls.
Cororutlons cunnot huve uny dlrect or
lndlrect benefclul lnterest
No such restrlctlon
Loes NC1 need to lnclude un uudlted
coy of lts lust bulunce sheet und roft
und loss ujc wlth lts unnuul return, must
however lnclude un uudltor's certlfcute
ln uccordunce wlth 7$25-', @;< )9:;<
Must lnclude un uudlted coy of
lts lust bulunce sheet und roft
und loss ujc wlth lts unnuul
return
Prohlbltlons (ulong wlth certuln
excetlons) found ln 7$25-', @BB und
@BB9 )9:;< for u co. to glve u loun to
dlrectors do NC1 uly.
Cenerully rohlblted from
glvlng u loun to u dlrector.
N-O$3$,2$% I$5P$$, KL$*#5 .3-4+5$ +,D .3-4+5$ )'*#+,-$%
('' Q,)
1eh 'oo Llng All rlghts reserved
N-O$3$,2$% I$5P$$, + )'*#+," +,D .+35,$3%E-#
)'*#+," .+35,$3%E-#
.$3#$5/+1 KL-%5$,2$
N$05% +,D C-*-5$D C-+0-1-5"
!3+,%($3+0-1-5" '( !-51$ +,D
C-U/-D-5" '( S,4$%5*$,5%
J-HE5 5' VP, .3'#$35"
7$#+3+5$ C$H+1 K,5-5"
C'+, )+#-5+1
)+#+2-5" '( Q$*0$3%
Q$*0$3%E-#
W'3*+1-5" -, )3$+5-', X
!$3*-,+5-',
1he co. us un ubstruct legul erson ls
lmmortul untll struck o the reglster
ln the event of belng wound u.
A urtnershl does not beneft from
eretuul successlons und exlsts only
us long us the members ugree thut lt
should contlnue.
Members of u rlvute co. ure lluble
for the co's debts but the extent of
the llublllty ls fxed. lor co.s llmlted by
shures, the level of llublllty ls the
umount remulnlng unuld on the
nomlnul vulue of the shures held.
Luch urtner ure jolntly und severully
lluble for the totul debts of the
urtnershl.
(unllmlted llublllty)
Shures ln co.s cun be trunsferred
freely
Purtners requlre other urtners
urovul to trunsfer thelr lnterest
Any buslness ussets ure owned by the
co. und not the sjholder (!"#"$%" '
()%*+,%- .//$%"-#,). So, there ls no
need to ulter tltle deeds when shures
chunges hunds.
1he members huve u rorletorlul llnk
wlth the ussets of the buslness und tltle
deeds mlght be requlred to chunge
subsequent to uny chunge of
membershl.
A co. ls u dlstlnct legul entlty seurute
from lts members und so ussetsj
llubllltles belong to the co. ltself
1here ls NC seurute legul erson
A cororute form cun secure debts by
meuns of u foutlng churge.
Cun borrow, but only for uroses
covered by thelr objects.
Cunnot, but cun borrow mortguge fxed
ussets.
Euve unrestrlcted owers of borrowlng
ln terms of umount und urose.
1he ower of duy to duy declslons ls
wlth the dlrectors who ure the ugents
of the cororutlon und reslduul
ower ls ln the hunds of the CM of
the sjholders
All urtners cun urtlclute ln the
munugement und every member ls un
ugent of the urtnershl.
NC mux
Mux zc
excet for urtlculur rofesslonul
urtnershl such us uccountunts und
luwyers who huve been excluded from
thls llmltutlon.
lormul.
Annuul returns und uudlted uccounts
must be submltted.
Luck of formullty ln settlng u u
urtnershl. Although lt ls usuul to huve
u formul deed of urtnershl, lt ls not
comulsory und cun be formed by orul
ugreement or even lnferred by
conduct. No need for fllng unnuul
uudlted uccounts or submlttlng un
unnuul return to the Reglstry of
8uslness.
6 1eh 'oo Llng All rlghts reserved
7$#+3+5$ C$H+1 .$3%',+1-5"
(L'c Q,)
6 1he cuse of 0"1)2)- ' 0"1)2)- 3 4) 5*6 estubllshed u very lmortunt rlnclle ln co. luw.
l.e. thut once u co. ls lncororuted, lt ls clothed wlth u vell of lncororutlon und becomes ln luw u seurute legul entlty dlstlnct
und seurute from the members.

6 1he co. ls regurded us un urtlfclul legul erson huvlng lts own rlghts, dutles und llubllltles.
6 Among other thlngs, the the co. hus ower to hold lund, muy sue und be sued ln lts own nume, enjoys eretuul successlon ln
thut the deuth of one or more of lts members does not uutomutlcully result ln u dlssolutlon of the co. (unllke the urtnershl)
und ln the cuse of u llmlted co. lts members enjoy llmlted llublllty ln the sense thut thelr llublllty to contrlbute tot hte ussets of
the co. ln the event of u llquldutlon ls llmlted to the umount, lf uny, unuld on thelr shures. 7$25-', @;=<> )9:;<
S5 Q+" 7/$ +,D I$ 7/$D
7)// ' 8"%9)**1,
: A co. muy sue und be sued ln lts own nume.
: lt must sue on lts own behulf ln resect of rlghts thut lt
hus und dutles thut ure owed to lt.
: 1he members muy not mulntuln un uctlon on the co.'s
behulf.
: lf u co hus u rlght ugulnst u urty under u contruct, lt ls for
the co. to sue.
: lf u dlrector hus breuched hls dutles to the co, lt ls for the
co. to enforce lts rlghts.
: 1hls ls known us the 'roer lulntl rule'.
S5 E+% .$3#$5/+1 7/22$%%-',
;, (),1 <,62"- 8)16=->/ ?*@ 5*6
: 1he co. ls lmmortul.
: lt lusts untll lt ls roerly wound u or struck o the
reglster.
: lts ldentlty erslsts deslte uny chunge ln the sjholdlng of
the co.
S5 Q+" VP, C+,D
!"#"$%" ' ()%*+,%- .//$%"-#, 4) 5*6
: 1he ussets, rlghts, llubllltles und obllgutlons relutlng to the
co.'s buslness belongs to the co und not the sjholders l.e.
members
C-+0-1-5" '( 5E$ Q$*0$3% *+" 0$ C-*-5$D
;, .AA1=#"*=)- 9@ B,, B$* C,
: 1he llublllty of the co.'s members ls llmlted.
: lor co.s llmlted by shures, the nomlnul vulue of the
member's shure fxes hls muxlmum llublllty.
: 1he level of llublllty ls the umount remulnlng unuld on
the nomlnul vulue of the shures held.
, 1eh 'oo Llng All rlghts reserved
C-(5-,H 5E$ Y$-1 '( S,2'3#'3+5-',
(L'c Q,)
Z/D-2-+1 KL2$#5-',%
)+%$ C+P

@? ln tlmes of wur to determlne the enemy churucter of the co.
D"=2=,% 4) 5*6 ' 4)-*=-,-*"1 <@%, 3 ;$99,% 4)E
6 the court llfted the vell of lncororutlon to look ut the
nutlonullty of the ersons ln eectlve control of the co.
A?vhere the co. hus been set u to eretrute u fruud or to
uvold u legul obllgutlon.
F)-,/ ' 5=A2"-
the defendunt who hud ugreed to sell roerty to the
lulntl sold lt lnsteud to u co. whlch he formed, ln order
to uvold un order of seclfc erformunce.
the court llfted the vell of lncororutlon, holdlng thut the
defendunt und the co. were one und the sume.
B? lor tux uroses
G-=* 4)-/*%$#*=)- 5*6 ' H$11)#I
the court held thut subsldlury co.s ln lenyu were ln fuct
resldent ln the Ul for uroses of tux becuuse centrul
control und munugement wus wlth the holdlng co. ln the
Ul.
8?Cn the busls thut u co. ls ln fuct the ugent of lts controllers.
02=*+ 0*)-, 3 J-=>+* 5*6 ' H=%2=->+"2 4)%A)%"*=)-
the court held thut the subsldlury co. wus uctlng us the
holdlng co's ugent ln currylng on u buslness, thus enubllng
the holdlng co. to get comensutlon for the dlsrutlon of
buslness followlng u comulsory ucqulsltlon of lts lund.
<?Crou Lnterrlse
6 Sometlmes the courts ure reured to treut grous und
co.s us one.
D8( 7))6 D=/*%=9$*)%/ 5*6 ' <)K,% 8"21,*/ 5H4
;?vhen the justlce of the cuse requlres the vell to be llfted
ln recent tlmes the Muluyslun courts seem to show u
greuter wllllngness to llft the vell of lncororutlon when
the justlce of the cuse so requlres.
<,-I$ "96$11"+ L9-= 0$1*"- .9$ H"I"% ' !)+6 5"*=M 9=-
0+"+ !)+6
75+5/5'3" KL2$#5-',%
75+5/5$ C+P

@? 7$25-', B; )9:;<
8y thls sectlon where the number of members of u co
fulls to one und the sole remulnlng member knowlngly
currles on buslness for u erlod longer thun 6 months, he
wlll be ersonully lluble for the debts lncurred ufter the
frst 6 months.

A?7$25-', @A@ )9:;<
8y thls sectlon where un omcer slgns on behulf of the
co., u cheque, romlssory note etc, und the co.'s nume ls
nor roerly stuted thereln, he wlll be ersonully lluble to
the holder of thut blll etc, lf the co. does not uy.

B? 7$25-', B[8=@> )9:;<
8y thls sectlon where the co.'s buslness hus been currled
on wlth lntent to defruud credltors or for other
fruudulent urose, uny erson knowlngly u urty there
to muy be mude ersonully lluble to uy the debts or
other llubllltles of the co. us the court deems ft.

8?7$25-', B[B=B> und B[8=A>
8y these sectlons where the co. hud lncurred u debt
when there wus no reusonuble rosect of the co. belng
uble to reuy the erson or ersons resonslble for tl
muy be mude ersonully lluble to reuy lt.

<?7$25-', @;\ und the R-,5E 72E$D/1$ 5' 5E$ )9:;<
8y these rovlslons u holdlng co. ls requlred to roduce
grou ujcs ln whlch the ussets, llubllltles, rofts und
losses of the grou us u whole ure refected.

;?7$25-', @8[ S!9:;]
8y thls sectlon the LClR muy lgnore uny trunsuctlon or
dlsosltlon, whlch hus the eect of uvoldlng or evudlng
tux.
Although, the co. ls u seurute legul entlty, there ure u no. of
clrcumstunces where thls rlnclle wlll be dlsregurded by the courts.
1he vell of lncororutlon muy be llfted elther by vlrtue of u stututory
rovlslon or by estubllshed cuse luw.