Malaysia legislation
Section 47A
Section 47A
(a)
the articles of the Labuan company so permits; and
(b)
the number of shares purchased or acquired, when aggregated with shares of the same class held by the Labuan company at the time of the purchase or acquisition, does not exceed fifteen percent of the shares of that class previously issued by the Labuan company.
(2)
The Labuan company whilst holding its own shares as treasury shares—
Labuan Companies 61
(a)
shall not exercise any right in respect of the treasury shares and any purported exercise of such a right is void and the treasury shares shall be treated as having no voting rights;
(b)
may not make or receive any dividend or distribution of the
Labuan company’s asset, including any distribution of assets to members on a winding up, in respect of the shares;
(c)
may at any time sell the treasury shares for cash or transfer the shares as consideration for the purchase or acquisition of shares in or assets of another company or assets of a person;
(d)
may at any time cancel the treasury shares and the directors may take such steps as are requisite to enable the company to cancel its shares without complying with section 53; and
(e)
may distribute the treasury shares as dividends to the shareholders (such dividends to be known as “share dividends”), provided that the costs of the shares on the original purchases shall be applied in the reduction of the funds otherwise available for distribution as dividends.
Dealing by a Labuan company in its own shares, etc.