Section 54

The issue by a Labuan company of preference shares ranking pari passu with existing preference shares issued by the company shall be deemed to be a variation of the rights attached to those existing preference shares unless the issue of the first mentioned shares was authorized by the terms of issue of existing preference shares or by the articles in force at the time the existing preference shares were issued.

If default is made in complying with this section, the Labuan company and every officer of the company who is in default commits an offence under this Act.

Penalty: Five hundred thousand ringgit.

Redeemable preference shares