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BHD (Berhad)

BHD (Berhad)
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What Is BHD (Berhad)?

BHD is a postfix for Berhad, which is utilized in Malaysia to recognize a public limited company. Berhad, BHD, or Bhd after a company's name demonstrates that it is a Malaysian public limited company (PLC) while the extended postfix Sendirian Berhad (SDN BHD) signifies that it is a private limited company.

Share Issue and BHD

Both BHD and SDN BHD companies are classified as those that issue shares, which is the most common type of business entity in Malaysia. Such companies have a limited number of shares, and the liability of their shareholders is restricted to the amount indicated on their unpaid shares.

Different types of companies in Malaysia are companies limited by guarantees, for example, nonprofit organizations, public societies, and unlimited liability corporations (ULC).

BHD Versus SDN BHD

A BHD company must have at least two shareholders, and the maximum is unlimited; a SDN BHD company can have two to 50 shareholders. SDN BHD companies are regularly small or medium sized enterprises (SME) while BHD companies are the biggest companies in Malaysia. BHD companies have stricter financial reporting standards than SDN BHD companies since they must unveil their financial statements to the public. BHD firms likewise have greater access to capital than SDN BHD companies since they can access public equity and debt supporting when they require subsidizing.

Albeit the course of incorporation for the two types of companies is substantially comparative, a SDN BHD company has a few severe expectations in its Articles of Association. These remember limitations for transfers of the company's shares, a maximum of 50 shareholders, a restriction on public memberships to the company's shares or debentures, and on gathering public deposits. Albeit most BHD companies list their shares and trade on a stock market, it's anything but a mandatory requirement. In this way, they can decide to remain unlisted.

True Example

In 2018, the Forbes Global 2000 rundown included 13 Malaysian BHD companies. As per the Forbes positioning — which depends on a combination of sales, profits, assets, and market value — the biggest companies in Malaysia include:

  1. Maybank Bhd (#394)
  2. Tenaga Nasional Bhd (#503)
  3. CIMB Group Holdings Bhd (#620)
  4. Public Bank Bhd (#646)
  5. Petronas Chemicals Group Bhd (#1268)
  6. RHB Bank Bhd (#1448)
  7. Axiata Group Bhd (#1508)
  8. Sime Darby Bhd (#1535)
  9. Hong Leong Financial Group Bhd (#1568)
  10. Sime Darby Plantation Bhd (#1624)
  11. Maxis Bhd (#1779)
  12. Genting Bhd (#1811)
  13. AmBank Group Bhd (#1911)

Features

  • Albeit most BHD companies list their shares and trade on a stock market, they can decide to remain unlisted.
  • BHD companies have stricter financial reporting standards than SDN BHD companies since they must reveal their financial statements to the public.
  • SDN BHD companies are commonly small or medium sized endeavors. BHD companies are the biggest companies in Malaysia.
  • Berhad (BHD) is a postfix utilized in Malaysia to distinguish a public limited company. The postfix Sendirian Berhad (SDN BHD) recognizes a private limited company.