Whenever I discuss business valuation with SME bosses,
many of them will start by saying :
“I hold 50% of the shares.”
“The company is worth RM10 million, so my shares should be worth RM5 million.”

I normally don’t answer immediately.
I will first ask :
“What type of shares are you holding?”

Many bosses will look at me and ask :
“Shares also got different types meh?”

Yes.

And holding 50% of the shares
does not mean you own half the company.

This is because your shareholding percentage
only tells me how many shares you hold.

The rights attached to the shares
tell me how much control you have
and what your shares are really worth.

Many Malaysian SME bosses still have the old understanding of share capital.

“My authorised capital is RM1 million.”
“My shares have a par value of RM1.”
“I have 100,000 shares, so they must be worth RM100,000.”

All these statements are already outdated.
After the Companies Act 2016 came into effect,
Malaysia adopted the no-par-value regime.

In simple terms:

There is no more par value.
There is no more authorised share capital.
The old concept of shares having a nominal value of RM1 or RM0.10 each no longer applies.

What really matters now is :

How many shares the company has issued.
How much share capital the company has received.
What type of shares each shareholder holds.
And what rights are attached to those shares.
Some shares carry voting rights.
Some shares have priority when dividends are paid.
Some shares allow unpaid dividends to accumulate.
Some shares can be redeemed by the company.
Some shares can be converted into ordinary shares.
Some shares have priority in getting back their capital when the company is wound up.

Therefore, even if two shareholders each hold 50% of the shares,
they may not be in the same position.

The numbers may be the same.
Their voting power may not be the same.
The order in which they receive dividends may not be the same.

When the company is sold or wound up, the order in which they receive money may also be different.

This is also why SSM issued Practice Directive 11/2026 on 14 July 2026.

SSM is no longer asking only :
“How many shares do you have?”

It also wants to know :
What can your shares actually do?

Under this new directive,
the following companies must lodge more detailed shareholders’ and share capital information :

Local companies whose members hold more than one type of share.
All foreign companies registered in Malaysia.

If all shareholders of a local company hold only the same type of ordinary shares,
the company is not subject to the mandatory lodgement under this directive.

Affected companies must lodge :

Table A, Capital Structure.
Table B, Shareholders Breakdown.

The information required goes beyond stating whether the shares are ordinary shares or preference shares.

The company must also disclose whether the shares carry voting rights,
whether they were paid in cash,
whether they are listed, and
whether the preference shares are cumulative, redeemable, convertible or participating.

In other words, SSM is no longer recording only the number of shares.
It is recording the power behind each type of share.
The lodgement period is from 14 July 2026 to 14 January 2027.

Read the full content on our blog:
https://www.ktp.com.my/blog/type-of-ordinary-share/20july2026