Holding Land 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. A holding company must have a minimum paid-up capital of RM2 million. The company must also appoint at least two directors, who must be natural persons.

A holding company in Malaysia must not hold more than 50% of the voting rights in any subsidiary company. A subsidiary company is a company that is more than 50% owned by the holding company. A holding company can, however, hold 100% of the shares in a subsidiary company that is not listed on a stock exchange.

A holding company must not carry on business activities that are the same or similar to those of its subsidiary companies. For example, a holding company that owns a construction company cannot itself carry out construction work.

The purpose of a holding company is to provide a centralised management for a group of companies. A holding company can make decisions on behalf of its subsidiary companies. It can also provide financial and managerial support to its subsidiary companies.

A holding company can help to