DESTINI Annual Report 2018

20. Share Capital 21. Share Premium Group and Company 2018 2017 RM RM At 1 January - 267,283,851 Transition to no-par value regime on 31 January 2017 - (267,283,851) At 31 December - - 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 Section 60 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 20). 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 RM267,283,851 for purposes as set out in Section 618(3) of the Act. Group and Company Number of shares Amount 2018 2017 2018 2017 RM RM RM RM Ordinary share with no par value Issued and fully paid: At 1 January 1,155,230,199 1,155,230,199 382,806,871 115,523,020 Transition to no-par value regime on 31 January 2017 -share premium - - - 267,283,851 At 31 December 1,155,230,199 1,155,230,199 382,806,871 382,806,871 The new Companies Act, 2016 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. 22. Foreign Currency Translation Reserve The exchange translation reserve represents exchange differences arising fromthe translation of the financial statements of foreign operations whose functional currencies are different from that of the Group’s presentation currency. DESTINI BERHAD ANNUAL REPORT 2018 165