Holding 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. A holding company can be either a parent company that owns subsidiaries or a pure holding company that has no business operations of its own.

In Malaysia, a holding company can be either a private company or a public company. A private company is a company that is not listed on any stock exchange and is not required to disclose its financial statements to the public. A public company, on the other hand, is a company that is listed on a stock exchange and is required to disclose its financial statements to the public.

A holding company can be either a wholly-owned subsidiary or a holding company with minority shareholders. A wholly-owned subsidiary is a company that is 100% owned by another company. A holding company with minority shareholders is a company that is majority-owned by another company but also has minority shareholders.

The Companies Act 1965 (CA 1965) governs the incorporation and operation of companies in Malaysia. Under the CA 1965, a company must have a minimum of two shareholders and a maximum of fifty shareholders. A shareholder can be an individual