Malaysia legislation
Section 55
Section 55
(a)
the sale of land or building, or both, as fixed assets; and
(b)
the revaluation of land or building, or both, as fixed assets, with the approval of the Registrar-General.
(2)
The capital gains referred to in paragraph (1)(a) may be utilised by the registered society for all or any of the following purposes:
→ AA963 (ba) any joint venture company or
(a)
the issue of bonus shares;
(b)
the writing off of accumulated losses;
(c)
the writing off of capital losses; and
(d)
the creation of a Bonus Share Redemption Fund.
(3)
No registered society shall utilise the capital gains referred to in paragraph (1)(a) for the purpose of issuing bonus shares unless and until all its accumulated and current losses, if any, have been completely written off.
(4)
The capital gains referred to in paragraph (1)(b) may be utilised by the registered society for the issue to its members of bonus shares which shall not be withdrawn but which may, with the approval of the Board, be transferred to another member of that registered society or, in the case of a member who dies after the issue of the bonus shares, be paid out of the Bonus Share Redemption Fund of that registered society.
(5)
The bonus shares redeemed by a registered society may be reissued as bonus shares to its members in accordance with the provisions of its by-laws.
(6)
A register of bonus shares shall be maintained by the registered society.
(7)
This section shall not apply to a registered society that is required by the provisions of any other written law governing its operations to deal with its capital gains in the manner provided in such law.