Things to note when Register Company Stock
Basic Rules
- Under the Companies Act 2016, par value has been abolished
- Companies are free to determine the price per share (no longer limited to RM1)
Decimal Limitation
- The share price can only have up to 4 decimal places
Calculation Issue (Example)
- Example: planning to register 3,000 shares with a total of RM50,000
- Calculated share price: RM16.666666… per share
- Due to the 4-decimal limitation, the price must be rounded
- This may result in a total amount less than RM50,000 (e.g., around RM49,999.80)
Key Considerations
- Always perform accurate calculations before deciding the share price
- Ensure the total registered amount meets the intended capital after rounding
- This helps avoid discrepancies during registration