Hold 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 several reasons why a company might choose to become a holding company. One reason is to create a centralized management structure for a group of companies. This can make it easier to make decisions and coordinate activities across the group. Another reason is to create a more diversified company. By owning shares in a number of different companies, a holding company can reduce the risk of its business being affected by problems in any one particular company.

A holding company can also be used as a vehicle for acquiring other companies. For example, a company that wants to take over another company may do so by first acquiring a controlling stake in the target company's holding company.

There are some disadvantages to being a holding company. One is that the holding company itself is not usually engaged in any productive activity, so it may be less efficient than a company that is directly engaged in producing goods or services. Another disadvantage is that the holding company structure can be complex and difficult to understand. This