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Share Capital & Maintenance of Share Capital
Share Capital & Maintenance of Share Capital
TOPIC 1
SHARE CAPITAL
z &
MAINTENANCE
OF SHARE
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CAPITAL
Rights issue & bonus issue
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2
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3
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INTRODUCTION
Definition:
new shares offered by company to
existing shareholders on
pro-rata basis within a fixed time
period.
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z
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Definition:
This is an allotment of shares to existing
shareholders in the proportion of their
present holdings.
‘A bonus issue of one new share for every
existing share held by the shareholders’
means the company is allotting fully paid-up
shares to shareholders on the basis of one
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3) OBJECTIVE To raise fresh capital for the To bring the market price per
firm. share, within a more popular
range.
8
…continued
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4) PAID UP Either fully or partly paid up. Always fully paid up.
VALUE
COPY RIGHT MAY SAPURA MOHD SHAZILLI
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INTRODUCTION
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FINANCIAL ASSISTANCE TO PURCHASE
SHARES
The main rule section 123 CA 2016:
Company is restricted ** from providing financial
assistance whether directly or indirectly and whether by
means of a loan, guarantee or provision of security or
otherwise, for the purpose of or in connection with a
purchase ……
(a)Any shares in the company
(b)in the case of subsidiary, any shares in its holding
company or in any way purchase, deal in or lend money
own its own shares
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z
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a
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