Wah Seong Corporation Berhad Annual Report 2019

160 WAH SEONG CORPORATION BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 26 TREASURY SHARES Group and Company 2019 2018 Number of shares Amount Number of shares Amount ’000 RM’000 ’000 RM’000 At 1 January 4,427 4,779 2,097 2,331 Shares repurchased - - 2,330 2,448 At 31 December 4,427 4,779 4,427 4,779 The shareholders of the Company had approved an ordinary resolution at the Nineteenth Annual General Meeting held on 15 May 2019 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. 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. Subsequent event On 8 April 2020, a total of 3,849,884 treasury shares were distributed to the shareholders on the basis of one (1) WSC treasury share for every two hundred (200) existing WSC ordinary shares held at the entitlement date on 12 March 2020 as single tier share dividend, being part of the first interim dividend in respect of the financial year ending 31 December 2020.