Malaysia legislation
Section 7
of Sabah Energy Corporation Successor Company Enactment 1997
Section 7
(1)
If the Minister so directs at any time before the successor company ceases to be wholly owned by the Chief Minister, State of Sabah such sum (not exceeding the accumulated realised profits of the Corporation in connection with its undertakings) as may be specified in the direction shall be carried by the successor company to a reserve (referred to in this section 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 allotted to members of the successor company as fully-paid bonus shares.
(3)
For the purpose of any statutory accounts of the successor company –
(a)
the vesting effected by virtue of subsection (1) of section 3 shall be taken to have been a vesting of the property, rights and liabilities comprised in the Corporation's undertakings to which the Corporation was entitled or subject on the vesting date and which was vested in the successor company under that subsection; and
(b)
the value of any asset or right or the amount of any liability of the
Corporation taken to have been vested in the successor company by virtue of paragraph (a) shall be taken to be the value or, as the case may be, the amount assigned to the asset, right or liability in the statement of accounts prepared by the Corporation in respect of the last complete
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accounting year of the Corporation ending on the date immediately before the vesting date.
(4)
For the purpose of any statutory accounts of the successor company, the amount to be included in respect of any item shall be determined as if anything done by the
Corporation (whether by way of acquiring, revaluing or disposing of any asset or incurring, revaluing or discharging any liability, or by carrying any amount to any provision of reserve, or otherwise) had been done by the successor company.
(5)
Without prejudice to the generality of subsection (4), the amount to be included in any reserves of the successor company as representing its accumulated realised profits shall be determined as if any profits realised and retained by the Corporation had been realised and retained by the successor company.
(6)
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 [Act 125.].
(7)
For the purposes of this section, "complete accounting year" means an accounting year ending with 31st December or a period to be determined by the Permanent
Secretary of the Ministry of Finance.