Malaysia legislation
Section 48A
Section 48A
(a)
where its memorandum or articles so provide; and
(b)
by special resolution, provided that the purchases thereof, whether direct or indirect, shall be made to the extent of any solvent surplus available.
(2)
A payment made by the Labuan company in consideration of the purchase of its own shares in accordance with subsection (1) may be made out of the Labuan company’s capital or profits so long as the directors declare by way of a solvency declaration that—
(a)
the Labuan company is able to pay its debts in full at the time of such payment and will be able to pay its debts as
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they fall due in the normal course of business during the period of twelve months immediately following the date of the payment; and
(b)
the value of the Labuan company’s assets is not less than the value of its liabilities (including contingent liabilities)
and will not after the proposed purchase become less than the value of its liabilities (including contingent liabilities).
(3)
A Labuan company may not purchase any of its own shares unless—
(a)
they are fully paid; and
(b)
a minimum of one shareholder, other than the Labuan company itself, would remain after the purchase.
(4)
Subject to section 47A, a Labuan company may at any time, by resolution of its directors, cancel any or part of the shares of the
Labuan company of any class purchased by it, and in such event a statement of cancellation shall be lodged with the Authority within thirty days from the date of cancellation.
(5)
Where the directors resolve to cancel the shares so purchased, the issued share capital of the company shall be diminished by the shares so cancelled.
(6)
The purchase of shares pursuant to subsection (1) and the cancellation of shares made pursuant to subsection (4) shall not be deemed to be a reduction of share capital of the Labuan company.