Malaysia legislation
Section 42
Section 42
(a)
increasing its share capital by the creation of new shares of such amount as it thinks expedient;
(b)
consolidating and dividing all or any of its share capital into shares of larger amount than its existing shares;
(c)
subdividing its shares or any of them into shares of smaller amount than is fixed by the memorandum and articles of association, so however that in the subdivision the proportion between the amount paid and the amount (if any) unpaid on each reduced share shall be the same as it was in the case of the share from which the reduced share is derived;
(d)
converting all or any of its paid-up shares into stock and reconverting that stock into paid-up shares of any denomination;
48
Act 643
(e)
cancelling shares which, at the date of the passing of the resolution in that behalf, have not been taken or agreed to be taken by any persons, and diminishing the amount of the share capital by the amount of the shares so cancelled;
(f)
redenominating the currency of any shares by the conversion of shares denominated in one currency to the same number of shares of another currency, with the prior written consent of the creditor, if any.
(2)
A redenomination of the currency of any shares under paragraph (1)(f) shall be deemed not to effect a cancellation of the existing shares and the issue of fresh shares.
(3)
A cancellation of shares under paragraph (1)(e) shall not be deemed to be a reduction of share capital within the meaning of this Act.
(4)
Where, under subsection (1), a Langkawi company has increased its share capital beyond the capital stated in its memorandum by shares of a fixed amount, it shall, within one month after the passing of the resolution authorizing the increase, cause to be lodged with the Registrar a notice in the prescribed form of the increase.
(5)
If any Langkawi company fails to comply with the provisions of subsection (4), the company and every officer of the company who is in default shall be guilty of an offence against this Act.
Penalty: Five thousand ringgit. Default penalty.
Validation of shares improperly issued