NAME: SHARVIN s/o MOHAN CLASS: FBI 1102P

SUBJECT: INTRODUCTION TO BUSINESS (BZ9013)

Question 1

a) Private Limited Company: Berjaya Group, AirAsia, DiGi Telecommunications,

Genting Group, Maxis, Media Prima Berhad

Public Limited Company: ALLIANCE FINANCIAL GROUP BHD, AJIYA BHD, CNI
HOLDINGS,

GAMUDA BHD, HEITECH PADU BHD, HEVEABOARD BHD.

b) Advantages of Public Limited Companies

- There is limited liability for the shareholders.

- The business has separate legal entity. There is continuity even if any of the
shareholders die.

- The shares of the business are freely transferable providing more liquidity to its
shareholders

Disadvantages of Public Limited Companies

- There are lot of legal formalities required for forming a public limited company. It is
costly and time consuming.

- The original owners may lose control.

- Public Limited companies are huge in size and may face management problem such as
slow decision making and industrial relations problems.
Advantages of Private Limited Company

-Limited Liability: It means that if the company experience financial distress because of
normal business activity, the personal asset of shareholders will not be at risk of being
seized by creditors.

-Continuity of existence: business not affected by the status of the owner.

Minimum number of shareholders need to start the business are only2.More capital can
be raised as the maximum number shareholders allowed is 50.

-Scope of expansion is higher because easy to raise capital from financial institutions and
the advantage of limited liability.

Disadvantages of Private limited company

- Growth may be limited because maximum shareholders allowed are only 50.
- The shares in a private limited company cannot be sold or transferred to anyone else
without the agreement of other shareholders.

- Restricted Capital Raising – For Private Limited Companies, there is a restriction on the
raising of capital via sale of shares. As mentioned, PLC’s can gain further funding by the
sale of shares, but this ability is lost to Private Limited Companies whose shares are
restricted.