Frequently Asked Question
What are the procedures to transfer the share of a Malaysian company?
There are a few key steps involved in transferring the shares of a Malaysian company. First, you will need to obtain the consent of the company’s board of directors. Next, you will need to prepare and execute a transfer deed. Finally, you will need to register the transfer deed with the Companies Commission of Malaysia (CCM).
If you are looking to transfer shares within Malaysia, it is important to note that there are stamp duty implications at LHDN depending on the value of the shares being transferred.
How long does it take to transfer shares of a company?
Generally speaking, the transfer of shares in a company is governed by the company’s constitution and/or share sale agreement (if any). In Malaysia, the Companies Act 2016 sets out the legal framework for share transfers. The Act provides that shares may be transferred by way of sale, gift or devolution of property. The transfer must be registered with the Registrar of Companies within 30 days from the date of the transfer.
A fee is payable for registration (RM30 for listed companies and RM50 for unlisted companies). Once registered, the transferee will become the shareholder of record and will be entitled to all rights and privileges attached to that shares held under a trust may also be transferred, subject to compliance with any terms and conditions set out in the trust deed.
What is the penalty if transfer of share is not registered?
If the transfer of shares is not registered with the Registrar of Companies within 30 days from the date of transfer, the company and all its officers are guilty of an offence and liable to a fine. The maximum penalty for such an offence is RM1,000.
What is the fee to transfer shares of a company?
The fee of Onecompany to transfer the share of a company is RM 350 for an unlisted company excluding stamping fee. In addition, it may also recover any expenses incurred in connection with the transfer, including legal and administrative costs.
What documents are required to transfer shares of a Malaysian company?
Generally, the following documents are required to transfer the shares of a Malaysian company:
- Approval from the company’s board of directors
- Transfer deed
- Copy of identity card or passport of both the transferor and transferee
- Letter from bank confirming payment for the purchase of shares.