LAW650 revision

What are the two main types of shares issued by companies in Malaysia?

• Common shares and preferred shares

• Ordinary shares and preference shares

• Class A shares and Class B shares

• Equity shares and debt shares

Under the Companies Act 2016, which rights are typically NOT granted to preference shareholders?

• Right to receive dividends at a fixed rate

• Right to vote on company resolutions

• Right to receive assets before ordinary shareholders during liquidation

• Right to participate in profit distribution beyond a specified amount

According to Section 69 of the Companies Act 2016, what can companies do regarding classes of shares?

• Only issue one type of share

• Issue different classes of shares with varying rights

• Issue shares without any voting rights

• Only issue redeemable shares

Which section of the Companies Act 2016 outlines the rights and powers attached to ordinary shares?

• Section 69

• Section 71

• Section 72

• Section 90

According to the Companies Act 2016, which section outlines the issuance of different classes of shares?

• Section 71

• Section 72

• Section 69

• Section 103

In the case of a forged transfer of shares, what did the court hold in *Re Bahia and San Francisco Rail Company*?

• The forged transfer is valid until proven otherwise.

• The true owner's name must be restored to the register of members.

• The innocent purchaser retains ownership of the shares.

• The company is not liable for damages.

When a financially distressed company tables a ........ to its creditors, it usually means the company is not able to pay its debts either fully or at all.

• scheme of arrangement

• corporate voluntary arrangement

• judicial management

What rights may shares confer according to Section 69 of the Companies Act 2016?

• Only voting rights

• Preferential rights to distributions, special voting rights, or no voting rights

• Only redeemable rights

• Rights only for ordinary shareholders

What is the primary purpose of the doctrine of capital maintenance?

• To allow companies to freely distribute assets to shareholders

• To protect creditors by ensuring that a company's capital remains intact

• To enable companies to repurchase their own shares easily

• To encourage companies to pay dividends regardless of profits

Which of the following actions is prohibited for companies concerning financial assistance?

• Providing loans to employees

• Giving financial assistance to persons to purchase shares of the company

• Offering discounts on share purchases

• Selling shares at a premium