132 Rights of holders of preference shares to be set out in memorandum or articles

Rights of holders of preference shares to be set out in memorandum or articles

No company shall allot any preference shares or convert any issued shares into preference shares unless there is set out in its memorandum or articles the rights of the holders of those shares with respect to repayment of capital, participation in surplus assets and profits, cumulative or non-cumulative dividends, voting, and priority of payment of capital and dividend in relation to other shares or other classes of preference shares, as provided in Section 66(1) Companies Act 1965.

If default is made in complying with this section the company and every officer of the company who is in default shall be guilty of an offence against this Act. The penalty for this offence is two thousand ringgit, as provided in Section 66(2) Companies Act 1965.

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Rights of holders of preference shares to be set out in memorandum or articles Copyright © 2011 by Wawasan Open University. All Rights Reserved.

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