Activities Of Holding Company Companies in Malaysia

A holding company is a company that owns other companies' outstanding stock. A holding company usually does not produce goods or services itself; rather, its purpose is to own shares of other companies to form a corporate group. In Malaysia, holding companies are regulated by the Companies Act 1965.

There are two types of holding companies in Malaysia: public and private. Public holding companies are those that are listed on the Malaysian Stock Exchange, while private holding companies are those that are not.

Public holding companies must comply with the listing requirements of the Malaysian Stock Exchange, which include, among others, the requirement to have a minimum paid-up capital of RM50 million. Private holding companies, on the other hand, are not subject to the listing requirements of the Malaysian Stock Exchange.

The activities of holding companies in Malaysia are governed by the Companies Act 1965 and the Securities Commission Act 1993. Holding companies in Malaysia are required to prepare their financial statements in accordance with the Financial Reporting Standards issued by the Malaysian Accounting Standards Board.

Holding companies in Malaysia are required to disclose their beneficial ownership in their annual reports. A beneficial owner is a person who has a beneficial interest in the shares of a company, whether directly or indirectly.

The Securities Commission Act 1993