PUBLISHER: MALAYSIASME.
Private limited company segregates a business’s liability from the personal wealth of its shareholders. But in reality, financial institutions usually
require the directors to act as guarantors for credit facilities. It is very common in SME-SMI companies for the directors and shareholders to be the same parties. Consequently, the compartmentalisation provided by a private limited company is nullified and creates a potential risk if the major portion of family wealth is derived from the business …
