The following question is based on similar facts as set out in Question 10.12 above, except that in this instance, XY Bhd has negative net assets. All the relevant percentage ratios are found to be inapplicable or produce anomalous results except for the Market Cap Test. In light of this, will XY Bhd be required to comply with Part D, Chapter 10 of the ACE LR in relation to the Land Transaction where XY Bhd pays for the land in cash?
In this respect, as all the other relevant percentage ratios are inapplicable or produce anomalous results, even if XY Bhd pays for the land wholly in cash, XY Bhd will have to ensure that the relevant provisions of Part D, Chapter 10 of the ACE LR are complied with.