Does Joint Shareholding Mean Each Person Owns Half?
Both Sdn. Bhd. and Berhad companies in Malaysia may have Joint Shareholding.
1. Joint Shareholding Does Not Mean 50–50 Ownership
- Joint shareholders own the same block of shares together,
- not half of the shares each.
- This may affect the company's ownership structure, fundraising, and exit arrangements.
2. How Is It Recorded?
- If A and B jointly hold 10,000 shares,
- the company register will state:
- A and B jointly holding 10,000 shares
- The 10,000 shares are jointly owned,not split into 5,000 shares each.
3. Who Has the Voting Rights?
- Unless otherwise stated in the Constitution or Shareholders' Agreement,
- the company generally recognises the first named joint shareholder.
- The first joint shareholder may:
- Attend the AGM
- Exercise voting rights
- Receive company notices
4. What Happens If One Joint Shareholder Passes Away?
- Joint shares are subject to the Right of Survivorship.
- The shares will automatically pass to the surviving joint shareholder.
- The company secretary will usually require:
- Death certificate
- Statutory declaration
- Supporting transfer documents
- before updating the register.
5. What Are the Risks?
- Joint shareholding is common among spouses,
- but it may create legal and practical issues.
- For example:
- Divorce may lead to ownership disputes
- Creditors may claim against the shares
- Share transfers, fundraising, or resolutions may become more complicated
- It is advisable to consult a Company Secretary or lawyer, and clearly define each party's rights and obligations in a Shareholders' Agreement.