Section 7
Financial structure of the successor company
of Railways (Successor Company) Act 1991
If the Minister of Finance, after consultation with the
Minister, so directs at any time before the successor company ceases to be wholly owned by the Government of Malaysia, such sum not exceeding the accumulated realized profits of the company as may be specified in the direction shall be carried by the company to a reserve, which in this section is referred to as “the statutory reserve”.
(2)
The statutory reserve may only be applied by the successor company in paying up unissued shares of the company to be alloted to members of the company as fully-paid bonus shares.
Railways (Successor Company)
(3)
For the purposes of any statutory accounts of the successor company, the value of any asset or right or the amount of any liability of the Railway Assets Corporation taken to have been vested in the company by virtue of section 3 in any particular year (in this section referred to as “the first mentioned year”) shall―
(a)
in the case where a statement of accounts has been prepared by the Railway Assets Corporation for the year immediately preceding the first mentioned year, be taken to be the value or, as the case may be, the amount assigned to that asset, right or liability in such statement of accounts; and
(b)
in the case where no statement of accounts has been prepared by the Railway Assets Corporation for the year immediately preceding the first mentioned year for any reason whatever, be taken to be the value or, as the case may be, the amount assigned to that asset, right or liability in the statement of accounts prepared by the Railway
Administration which was in existence under the repealed
Ordinance for the last complete accounting year of the
Railway Administration and ending immediately before the first mentioned year.
(4)
References in this section to the statutory accounts of the successor company are references to any accounts prepared by the successor company for the purposes of any provision of the
Companies Act 1965.
(5)
For the purposes of this section, “complete accounting year”
means an accounting year ending with 31 December.