Restriction of a Private Limited Company’s Shareholders
Singapore’s current company laws specify that every private limited company in the country is to have a number of shareholders which is between one and 50. Such is the case because only a public company is permitted to have more than 50 shareholders. The Singaporean government and business authorities believe that it would be unfeasible for any private limited company to retain its status as one while at the same time having an excessive number of shareholders. Thus, this restriction was put into place in order to protect Singapore’s private limited companies as well as their owners who would like to ensure that their companies remain as private limited companies and thus avoid relinquishing the benefits granted to such companies and their owners.
When one considers the many restrictions which are inherent to the establishment of a private limited company in Singapore, it should not come as any surprise that many people all over the country have become interested in starting one. If it is the case that such is also true of you, we at Paul Hype Page & Co are more than willing to be of assistance with the establishment of a private limited company of your own. We will even assist you with the selection of people whom we deem to be suitable to serve as the company secretary and the director of your company. In this way, we ensure that all of your new company’s compliance requirements are completely fulfilled.
Identity and Roles of the Shareholders of a Singapore Private Limited Company
There are no restrictions which pertain to the nationality of the shareholders of any private limited company based in Singapore. It is even possible for every share of the company to be held by foreigners. The shareholders of a company are not necessarily required to be people. In many cases, other companies take the role of shareholder of a different company. The companies which hold shares may either be local companies or foreign ones.
All of a company’s shareholders combine to serve as the owners of the company. For this reason, the company’s shareholders have certain roles which they must fulfil in their capacity as the company owners. Shareholders are to vote whenever they may be required to do so. Such instances in which shareholders may have to vote include the firing or hiring of a director, the change of the company’s name or share capital, or the selection of a new director. They also have the right to attend meetings as well as that to call for them. Such meetings include extraordinary general meetings (EGMs) as well as annual general meetings (AGMs). In EGMs and AGMs alike, shareholders have the opportunity to state any concerns which they may have regarding the operation of the company.