Section 46

The redemption shall not be taken as reducing the amount of authorized share capital of the company.

The shares shall not be redeemed—

The premium, if any, payable on redemption shall be provided for out of profits or the share premium account before the shares are redeemed.

Where any such shares are redeemed otherwise than out of the proceeds of a fresh issue, there shall, out of profits which would otherwise have been available for dividend, be transferred to a reserve called the “capital redemption reserve” a sum equal to the nominal amount of the shares redeemed, and the provisions of this Act relating to the reduction of the share capital of a

Langkawi company shall, except as provided in this section, apply as if the capital redemption reserve were paid-up share capital of the company.

Where, in pursuance of this section, a Langkawi company has redeemed, or is about to redeem, any preference shares, it may issue shares up to the nominal amount of the shares redeemed or to be redeemed as if those shares had never been issued, and accordingly the share capital of the company shall not, for the purposes of any fee under this Act, be deemed to be increased by such issue, but where new shares are issued before the redemption of the old shares, the new shares shall not, so far as it relates to any fee under this Act, be deemed to have

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been issued in pursuance of this subsection unless the old shares have been redeemed within one month after the issue of the new shares.

The capital redemption reserve may be applied in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares.

If a Langkawi company redeems any redeemable preference shares, it shall, within one month after so doing, give notice thereof to the Registrar specifying the shares redeemed.

Restriction on inviting investments from public