Foreign investors who are partners in a company set up in Malaysia can sell the shares they own in the respective company. Investors can also sell a part of the shares they own, but the procedure has to be completed following specific regulations which are prescribed by the applicable legislation, but also by the shareholders’ agreement, a document which provides an in-depth framework on the shareholder’s rights and obligations. Those who want to open a company in Malaysia can receive assistance on the share transfer procedure from our team of specialists in company formation.
Table of Contents
Selling shares in a company Malaysia
In order to sell the shares the investor owns in a Malaysian company, specific procedures have to be completed. The transfer of shares must be agreed upon by the other shareholders, depending on the value that is being sold, but also on the seller’s statute, as there are different regulations for minority and majority shareholders.
Those who want to start the procedure of company formation in Malaysia are advised to sign a shareholders’ agreement. As a general rule, the document is usually signed by the shareholders of medium and large companies. The document is useful as it provides a clearer image on the procedure related to the transfer of shares, as well as many other aspects. Our team of company formation agents in Malaysia can help businessmen in drafting shareholder agreements.
Our CPA in Malaysia can offer you a series of accounting services for the company you have in this country. Payroll and bookkeeping are among the most important. Moreover, you can benefit from audits and preparation of annual financial statements or administration and management of human resources. Companies also need a risk assessment and evaluation so that shareholders know what financial risks they may be exposed to at a given moment and if measures are needed.
Share transfer legislation in Malaysia
The share transfer in Malaysia is regulated by the Companies Act 1965. Restrictions regarding the transfer of shares in a public company are not permitted under the applicable legislation, but they are necessary in the case of a private limited company.
An important aspect when selling shares in a company in Malaysia set up as a private limited company is that its directors are allowed to refuse the respective transfer if they may consider so.
The shareholders’ agreement is a very useful tool for investors who are minority shareholders in the company. The document can be drafted in such a manner that their rights will be protected.
Businessmen who are interested in selling shares of a Malaysian company are invited to contact our team of company formation consultants in Malaysia.