Asia Media Annual Report 2017

ASIA MEDIA GROUP BERHAD Annual Report 2017 115 15. Share Capital (cont’d) The new Companies Act 2016 (the “Act”), which came into operation on 31 January 2017, abolished the concept of authorised share capital and par value of share capital. Consequently, the amounts standing to the credit of the share premium account become part of the Company’s share capital pursuant to the transitional provisions set out in Section 618(2) of the Act. There is no impact on the numbers of ordinary shares in issues to the relative entitlement of any of the members as a result of this transition. The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All ordinary shares carry one vote per share without restrictions and rank equally with regard to the Company’s residual assets. 16. Reserves Group Company 2017 2016 2017 2016 Note RM RM RM RM Non-distributable Share premium (a) - 826,800 - 826,800 Warrant reserve (b) - 3,519,617 - 3,519,617 - 4,346,417 - 4,346,417 Distributable Retained earnings/ (accumulated losses) 414,591 (5,385,943) (7,325,222) (12,585,237) 414,591 (1,039,526) (7,325,222) (8,238,820) The nature of reserves of the Group and of the Company is as follows: (a) Share Premium Share premium comprises the premium paid on subscription of shares in the Company over and above the par value of the shares. Prior to 31 January 2017, the application of the share premium account was governed by Sections 60 and 61 of the Companies Act, 1965. In accordance with the transitional provisions set out in Section 618(2) of the new Companies Act, 2016 (the “Act”), on 31 January 2017, the amounts standing to the credit of the share premium account become part of the Company’s share capital (Note 15). Notwithstanding this provision, the Company may within 24 months from the commencement of the Act, use the amount standing to the credit of its share premium account of RM826,800 for purposes as set out in Sections 618(3) of the Act. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2017 (cont’d)