Wah Seong Corporation Berhad Annual Report 2020

161 ANNUAL REPORT 2020 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 24 SHARE CAPITAL Group and Company 2020 2019 Number of shares Carrying value Number of shares Carrying value ’000 RM’000 ’000 RM’000 Issued and fully paid: Ordinary shares with no-par value at 1 January/ 31 December 774,888 547,690 774,888 547,690 The holders of ordinary shares (except treasury shares) are entitled to receive dividends as and when declared by the Company. All ordinary shares carry one vote per share and rank equally with regard to the Company’s residual assets. 25 TREASURY SHARES Group and Company 2020 2019 Number of shares Amount Number of shares Amount ’000 RM’000 ’000 RM’000 At 1 January 4,427 4,779 4,427 4,779 Share dividends distributed to owners of the Company (3,850) (4,155) - - At 31 December 577 624 4,427 4,779 The shareholders of the Company had approved an ordinary resolution at the Twentieth Annual General Meeting held on 23 June 2020 for the Company to purchase its own ordinary shares of up to a maximum of 10% of the total number of issued shares 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 ordinary shares 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.