MKH Annual Report 2018

163 MKH Berhad Annual Report 2018 24. SHARE CAPITAL The Group and The Company Number of shares Amount Share capital Share capital (issued and Treasury (issued and Treasury fully paid-up) shares fully paid-up) shares RM RM 2017 At beginning of year 419,443,984 - 419,443,984 - Issuance of shares pursuant to: - rights issue 42,625,187 - 80,561,603 - - bonus issue 85,250,374 - 85,250,374 - - warrants 15,582,377 - 28,978,631 - Transfer from share premium - - 785,179 - Share issue expenses - - (1,704,487) - At end of year 562,901,922 - 613,315,284 - The Company’s authorised and issued and fully paid-up share capital in 2016 comprises ordinary shares with a par value of RM1 each. The new Companies Act, 2016 (the “Act”), which came into e ect on 31 January 2017, introduces the “no par value” regime. Accordingly, the concepts of “authorised share capital” and “par value” have been abolished. Consequently, balances within the share premium account have been transferred to the share capital account pursuant to the transitional provisions set out in Section 618 (2) of the new Act. Notwithstanding this provision, the Company has elected to utilise its share premium account of RM785,179 for purposes stipulated in Section 618 (3) of the new Act for a transitional period of 24 months from 31 January 2017. (a) Share capital The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company’s residual assets. During the financial year, the issued and paid-up share capital of the Company increased from RM613,315,284 to RM654,458,655 by way of exercise of 23,646,246 warrants for 23,646,246 ordinary shares at a subscription price of RM1.55 per share. The new ordinary shares issued rank pari passu in all respects with the existing shares of the Company. (b) Treasury shares Treasury shares relate to ordinary shares of the Company that are held by the Company. The amount consists of the acquisition costs of treasury shares net of the proceeds received on their subsequent sale or issuance. The Company acquired 4,038,600 (2017: Nil) shares in the Company through purchases on the Bursa Malaysia Securities Berhad during the financial year. The total amount paid to acquire the shares including transaction costs was RM5,437,937 (2017: RMNil) and this was presented as a component within shareholders’ equity. The directors of the Company are committed to enhancing the value of the Company for its shareholders and believe that the repurchase plan can be applied in the best interests of the Company and its shareholders. The repurchase transactions were financed by internally generated funds. The shares repurchased are being held as treasury shares. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2018