Wah Seong Corporation Berhad Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 FINANCIAL STATEMENTS WAH SEONG CORPORATION BERHAD ANNUAL REPORT 2017 162 26 TREASURY SHARES Group and Company 2017 2016 Number of shares ’000 Amount RM’000 Number of shares ’000 Amount RM’000 At 1 January 2,097 2,331 1,705 1,991 Shares repurchased - - 392 340 At 31 December 2,097 2,331 2,097 2,331 The shareholders of the Company had approved an ordinary resolution at the Seventeenth Annual General Meeting held on 19 May 2017 for the Company to purchase its own shares of up to a maximum of 10% of the issued and paid- up capital of the Company. The Directors of the Company are committed to enhancing the value of the Company and believe that the purchase plan is being implemented in the best interest of the Company and its shareholders. During the financial year, the Company had not purchased any of its issued share capital from the open market on Bursa Malaysia. Pursuant to the provisions of Section 127 of the Companies Act 2016 (“Act”), the Company may either retain the purchased shares as treasury shares or cancel the purchased shares or a combination of both. The Directors of the Company may treat the purchased shares held as treasury shares as follows pursuant to Section 127(7) of the Act: (i) distribute the treasury shares as dividends to the shareholders, such dividend to be known as “share dividends”; (ii) resell the treasury shares or any of the treasury shares in accordance with the relevant rules of Bursa Securities; (iii) transfer the treasury shares or any of the treasury shares for the purposes of or under an employees’ share scheme; (iv) transfer the treasury shares or any of the treasury shares as purchase consideration; (v) cancel the treasury shares or any of the treasury shares; or (vi) sell, transfer or otherwise use the treasury shares for such other purposes as the Minister (as defined in the Act) may by order prescribe. As treasury shares, the rights attached as to voting, dividends and participation in other distribution, whether cash or otherwise, of the Company’s assets including any distribution of assets upon winding up are suspended and the treasury shares shall not be taken into account in calculating the number or percentage of shares or of a class of shares for any purposes including substantial shareholdings, takeovers, notices, the requisitioning of meetings, the quorum for a meeting and the result of a vote on a resolution at a meeting.