Issuance NEW share

Description

• The Issuance of New Shares refers to the process where a company increases its share capital by creating and allocating additional shares to existing or new shareholders. This allows the company to raise funds for expansion, pay off liabilities, or enhance its capital base.

GOV Department

• Suruhanjaya Syarikat Malaysia (SSM) / Companies Commission of Malaysia

License Name (Malay)

• Pengeluaran Saham Baharu

Details

• Companies may issue new shares as authorized by their Constitution or with approval from shareholders.
• The process involves passing a board resolution, notifying SSM, and issuing share certificates to the allocated shareholders.
• New shares can be issued through rights issues, private placements, or public offerings.
• Complies with the Companies Act 2016 and other regulatory guidelines.

Important Rules

• The issuance must align with the company's authorized share capital and Constitution.
• Approval from shareholders or the board of directors is required.
• Companies must file the necessary documents, such as Form Section 75 & 76 Notice, with SSM.
• Shareholders must be informed about the new issuance and its impact on their shareholding percentage.
• The use of proceeds from the new shares must be disclosed and managed transparently.

Compound & Punishment

• Failure to notify SSM about the new share issuance within the stipulated timeframe may result in:
  • Fines up to RM50,000 for the company and its directors.
  • Invalid issuance, which may lead to legal disputes from shareholders.
• Providing false or misleading information during the process can result in severe penalties, including imprisonment for responsible parties.

Advisor