MISC Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 255 Financial Statements 26. SHARE CAPITAL AND SHARE PREMIUM (a) Share capital Group and Corporation Number of shares Amount 2017 '000 2016 '000 2017 RM'000 2016 RM'000 Issued and fully paid Ordinary shares At 1 January 4,463,794 4,463,794 4,463,794 4,463,794 Add: Transitioning to non-par value regime (i) 4,459,468 - 4,459,468 - At 31 December 8,923,262 4,463,794 8,923,262 4,463,794 Special preference share - (ii) - (ii) - (ii) - (ii) (i) 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 outstanding in the share premium account become part of the Corporation share capital pursuant to the transitional provisions set out in Section 618(2) of the Act. Notwithstanding this provision, the Corporation may within 24 months from the commencement of the Act, use the amount outstanding in the share premium account of RM4,459,468,000 for purposes as set out in Sections 618(3) of the Act. There is no impact on the numbers of ordinary shares in issue or the relative entitlement of any of the members as a result of this transition. (ii) The Group has one authorised and issued special preference share of RM1. The special preference share, which may only be held by the Ministry of Finance ("MoF") or its successors or any Minister, representative, or any person acting on behalf of the Government of Malaysia, carries rights as provided by Article 3B of the Corporation's Articles of Association. Certain matters, in particular the alterations of specified Articles of Association, require the prior approval of the holder of the special preference share. The holder of the special preference share is not entitled to any dividend nor to participate in the capital distribution upon dissolution of the Corporation but shall rank for repayment in priority to all other shares. The share does not carry any right to vote at General Meetings but the holder is entitled to attend and speak at such meetings.