DEFINITION of 'BHD (Berhad)'

The suffix Bhd. is an abbreviation of a Malay word "berhad," which means "private." An equivalent of Ltd.(which is used in Britain, U.S., etc.), Bhd. is used to indicate a private limited company in Malaysia. In a limited company, the shareholders' liability is limited to the capital they'd originally invested. If such company becomes insolvent, the shareholders personal assets remain protected. Shares in a private limited company are not offered to the general public (distinguishing it from a public limited company.)

BREAKING DOWN 'BHD (Berhad)'

Since shares in a private limited company can't be offered to the general public, they also can't be traded on a public stock exchange. But private companies have less strict disclosure requirements than public ones, and so most companies remain private. An example of a company employing such a structure is Khazanah Nasional Berhad.

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